Airbnb and Short-Term Letting: How Your Tax Works

Income you earn from Airbnb and other short-term lettings is taxable in Ireland and must be declared on your income tax return. Unlike long-term letting, short-term letting is generally treated as trading income — and Rent-a-Room Relief does not apply to stays booked through Airbnb or similar platforms.

Is short-term letting income taxable?

Yes. Short-term lettings are generally treated as trading income rather than rental income, so you pay income tax, USC and PRSI on your profits under self-assessment. You must register for self-assessment, file an annual return and keep records of your income and expenses.

Does Rent-a-Room Relief apply?

No. Rent-a-Room Relief only applies when you let a room in your principal private residence to a tenant on a long-term basis. Short-term stays booked through Airbnb and similar online platforms do not qualify, so this income must be declared and taxed in full.

What expenses can you claim?

• A proportion of the running costs, such as utilities, heating and broadband.
• Repairs, maintenance and replacement of furnishings related to the letting.
• Cleaning, laundry and platform fees.
• Capital allowances on furniture and equipment used for the letting.

Short-term letting tax is a common source of unwelcome surprises. If you let through Airbnb, talk to Bradán Accountants — we will make sure you declare the right amount and claim every expense you can.

Sources

• Revenue Tax and Duty Manual – Part 04-08-01 (Rental income): https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-08-01.pdf
• Revenue.ie – Rent-a-Room Relief: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx
• Taxes Consolidation Act 1997 – section 216A (Rent-a-Room Relief)