In Ireland, the tax obligations of someone engaging in short-term rental activities include;
- **Income Reporting**: All income from short-term rentals, such as those listed on Airbnb, must be declared to the Revenue Commissioners. Unlike long-term lettings, which may qualify for a tax-free earnings threshold of up to €14,000 annually under the rent-a-room relief scheme, short-term rental income does not enjoy this benefit.
- **Tax Rates**: Rental income is subject to tax at your standard rate—20% or 40%, depending on your overall income. While the rent-a-room relief is not applicable, you can deduct legitimate expenses (e.g., utility bills, property insurance, cleaning, and maintenance costs) to lower the taxable income.
- **VAT**: A 9% VAT rate applies to short-term lettings. It's important to maintain detailed records of all rental income and expenses.
- **Preliminary Tax**: Based on your rental income, you may need to pay Preliminary Tax for the upcoming tax year.
Governmental Resources
For detailed advice and to ensure compliance with all regulations, consider consulting the following resources:
- **Department of Finance**
- Guidance on tax implications and permissions.
- Contact: +353 1 676 7571 | [info@finance.gov.ie](mailto:info@finance.gov.ie)
- Website: [Department of Finance](http://www.gov.ie/en/organisation/department-of-finance/)
- **Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media**
- Information on tourism-related regulations.
- Phone: 01 631 3800
- Website: [Department of Tourism and Culture](http://www.gov.ie/en/organisation-information/bc7a9-contact-the-department-of-tourism-culture-arts-gaeltacht-sport-and-media/).