Short-term letting income earned through Airbnb or similar platforms is rental income for Irish tax purposes. The distinction that catches most hosts is the one between rent-a-room relief, which exempts up to €14,000 a year in certain letting arrangements, and short-term letting, which does not qualify for that relief at all. Understanding which category your income falls into determines how much of it you actually keep.
Why Rent-a-Room Relief Does Not Apply to Short-Term Lets
The rent-a-room scheme requires the tenant to occupy the room for a continuous period of at least 28 days. Short-term platform lets, where guests come and go over a few nights or a weekend, do not meet that condition. Revenue has confirmed this position explicitly. Declaring Airbnb income and expecting the €14,000 threshold to protect it is not correct, and Revenue has access to platform data to identify hosts who have made that assumption.
How Short-Term Let Income Is Taxed
Revenue requires the full gross income from short-term letting to be declared as rental income on the annual tax return. Unlike rent-a-room, expenses can be deducted against the income, which means the taxable figure is not necessarily the full amount received through the platform.
| Expense | Deductible? |
|---|---|
| Platform service fee (Airbnb commission) | Yes |
| Cleaning costs | Yes |
| Linen, toiletries, consumables | Yes |
| Home insurance apportioned to letting period | Yes |
| Wear and tear on furniture and fittings (12.5% per year) | Yes |
| Mortgage interest (owner-occupied home) | No |
| Capital improvements | No |
How Wear and Tear Deductions Work
Furniture, fittings, and equipment bought for the letting are eligible for a capital allowance of 12.5% per year over eight years. A bed bought for €800 generates a €100 deduction annually, even if the item is replaced before the allowance runs out. Keeping purchase receipts for furniture and appliances unlocks these deductions, which accumulate significantly over time. The annual income tax return is where these claims are made each year.
Revenue’s Access to Platform Data
Airbnb and other short-term letting platforms are required to report Irish host earnings to Revenue under the DAC7 reporting framework, which took effect for data reported from January 2024. Revenue receives details of gross earnings, number of transactions, and property information. This is not automatic assessment, but it does mean the data exists and can be matched against filed returns or the absence of them.
When Income Is High Enough for VAT to Become a Question
Most residential short-term letting falls under the residential property exemption from VAT. If letting generates more than €40,000 a year from platform-facilitated activity, or if the nature of the letting shifts toward commercial accommodation, VAT registration may come into scope. This is not a common threshold for typical Airbnb activity, but hosts with multiple properties should have the position checked. Sound bookkeeping records covering income by property and period make the analysis straightforward.
Planning Permission and Short-Term Letting
A property in a rent pressure zone used for short-term letting for more than 90 nights per year requires planning permission for a material change of use. Letting without permission does not create a separate tax consequence, but it does create a planning exposure that affects the property’s value and future use. The tax question and the planning question sit side by side, and sometimes the planning issue is the more urgent one to address.
Questions About Airbnb and Short-Term Let Tax
Do I have to declare Airbnb income if it is under €14,000?
Yes. Rent-a-room relief does not apply to short-term letting. There is no figure below which Airbnb income does not need to be declared on a tax return.
Can I deduct mortgage interest against short-term letting income?
Not for a property you live in yourself. Mortgage interest relief on owner-occupied properties does not apply in this context. For an investment property with a mortgage that you let short-term, interest is deductible as a rental expense at the applicable percentage for the tax year.
What is the correct form to declare Airbnb income?
Form 11 if you are self-assessed. Form 12 if you are a PAYE employee with rental income that sits below the threshold for mandatory self-assessment. Revenue’s MyAccount portal handles Form 12 filings directly online.
Does Revenue actually know about my Airbnb earnings?
Yes. DAC7 reporting rules that came into effect in 2024 require platforms to report Irish host earnings to Revenue each year. Undeclared income carries considerably higher risk than it did in earlier years.
If I let my whole house while away for a month, does rent-a-room apply?
No. Rent-a-room requires you to be occupying the property as your principal private residence during the letting period. Letting the whole property while absent does not qualify and the full income must be declared.
Can I split the income with my partner to make use of both tax bands?
If the property is jointly owned, income is split according to the ownership proportion and each person declares their share. Where both owners are in the lower income tax band, this can significantly reduce the combined liability.
Are cleaning fees charged to guests also taxable income?
Yes. Gross income through the platform, including service charges or cleaning fees collected on your behalf, is rental income. The cleaning cost paid out is then deductible as an expense in the same year.
What if I have an Airbnb property abroad that I also declare in Ireland?
Irish tax residents are assessable on worldwide income. Foreign platform rental income must be declared in Ireland, with a credit available for tax paid in the country where the property is located, depending on the double taxation treaty in force.
Declaring It Correctly From the Start
The number of hosts declaring platform income correctly from their first year is low. Most wait until Revenue queries a return, or until undeclared periods have accumulated penalties. Getting a clean position established early is considerably cheaper than reconstructing several years of missing returns.
How We Help Short-Term Letting Hosts Get Right With Revenue
We work with hosts at all stages, from first-time declarers with a handful of bookings to those with multiple properties across platforms. The starting point is always the same: establish what was received, what expenses can be deducted, and what years need to be covered. Our tax returns service covers rental income of all kinds, including platform-facilitated short-term letting. For a broader picture of how Irish rental income obligations work, the geroconnor.info site covers the position for landlords at various stages.
