Irish tax regulations differ for non-resident landlords depending on whether lets are long or short term. We give an overview of tax on short-term rentals in Ireland.
Irish non-resident landlords and tax
If you are an Irish non-resident landlord and you rent your property out to a tenant(s) on a permanent basis, your income is considered to be rental income, which is passive income.
However, if you choose to go down the holiday lettings route, you have guests (rather than tenants with tenant’s rights), and in this case, the income you earn is usually classed as trading income.
The difference is key because it dictates how your income is taxed. If you rent your property out through Airbnb or other short-term letting sites such as booking.com or VRBO, you need to understand your tax obligations and ensure you are compliant. A failure to do this could lead to penalties.
Tax on trading income
Trading income is subject to higher tax deductions and allowances than rental income. This brings both advantages and disadvantages.
The advantages of short-term lets
- You can offset expenses that are related to your ‘trade’ including insurance, cleaning costs, utilities, property repairs and maintenance and accounting costs
- You may be eligible for Earned Income Credit of up to €1,875
- Trading income can be used in calculating your annual pension contribution threshold if you decide to make a tax-deductible payment to your pension
- Profit will be subject to
The disadvantages of short-term lets
- You are not eligible for Residential Premises Rental Income Relief (RPRIR)
- As a non-resident short-term landlord, you are obliged to register and charge VAT on all income and VAT thresholds do not apply
- Pay Related Social Insurance (PRSI) will apply on any profit and is charged at 4%
- If you rent out all or a part of your main residence via Airbnb or similar, the Revenue may deem your property to be a commercial space and it could become liable for capital gains tax (CGT), currently charged at 33%
- You may be liable for commercial rates payable to your Local Authority.
- You don’t qualify for Rent-a-Room Relief
Filing Airbnb tax as an Irish non-resident landlord
If you’re an Airbnb host, it’s important to know that Airbnb is legally required to provide the Revenue Commissioners with details of any income you earn through their platform. Their Airbnb tax guide is a useful resource and contains further information on the tax obligations of landlords of short term lets in Ireland.
The tax year in Ireland runs from 1 January to 31 December. Tax forms must be filed by 31 October for each tax year i.e. before 31st October 2024 for the 2023 tax year. You should check with the Revenue or a specialist tax adviser regarding your eligibility for tax reliefs and allowances.
The tax situation for non-residents can be tricky to navigate so we strongly recommend that you seek professional advice.
If you rent your property in Ireland out on a long-term basis, check out for information on Ireland’s new Non-Resident Landlord Withholding Tax, introduced in 2023.
While we make every effort to provide up-to-date and comprehensive information, this article does not constitute legal or tax advice. You should do your own research to check that regulations have not changed since this article was published and seek professional, independent legal and tax advice on your tax liability as a non-resident landlord in Ireland.
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