Air BNB Rental Income

Q: I earn some additional income from Air BNB. I have heard that there is a relief where I can earn this income tax-free once the amount I earn is under €14,000. Is this correct?    

28th February 2018

Unfortunately, this is incorrect and any additional income that you earn from Air BNB must be reported to the Revenue Commissioners and tax needs to be paid on any profits earned.

When Air BNB first hit the Irish market there was some confusion as to whether the income earned qualified for a relief known as Rent a Room Relief. This relief entitles people to earn up to €14,000 in tax-free income from renting out a room in their home.

Revenue has since clarified that “short-term lettings advertised through online accommodation sites do not qualify for this relief”

It’s not all bad news though as you will not pay tax on the gross income you receive rather you will pay tax on the income after deducting the expenses associated with the letting.

These expenses are numerous but the main ones would be Light & Heat costs during the stay, food costs, costs of laundering linen, Air BNB commission, accounting fees for preparing the tax return etc.

The best advice is to ensure that you keep all receipts/invoices for any costs associated with the letting so that they can be used to reduce your tax bill.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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Call us today to make an appointment at your local office

1890 98 76 09

Or submit an enquiry