Tax on Airbnb & Short-Term Letting Income in Ireland

The popularity of Airbnb and other short-term letting platforms has surged in Ireland over the past decade, giving homeowners and investors an attractive way to generate rental income. But while hosting can be profitable, it’s important to remember that all Airbnb income in Ireland is taxable and subject to strict Revenue reporting rules.

This comprehensive guide explains:

• How Airbnb and short-term letting income is taxed in Ireland
• What expenses you can claim to reduce your tax bill
• Revenue rules, planning regulations, and VAT obligations
• The best way to report Airbnb income and stay fully compliant

Is Airbnb Income Taxable in Ireland?

Yes — all income earned through Airbnb, Booking.com, VRBO, or any short-term letting platform is taxable in Ireland. It makes no difference if you:

• Rent out your entire home, a spare room, or a holiday property
• Host guests occasionally or year-round
• Are paid in cash, bank transfer, or via an online platform

Important: Airbnb income does not qualify for the Rent-a-Room Relief, which only applies to long-term lodgers.

How Is Airbnb Income Taxed in Ireland?

Revenue can tax Airbnb income under two categories:

Case V – Rental Income

Applies if the property is let occasionally or without substantial additional services.

Case I – Trading Income

Applies if you operate like a business — frequent lettings, providing meals, daily cleaning, or concierge services.

Case I income can trigger PRSI and USC liabilities on top of income tax.

2025 Irish Income Tax Rates:

• 20% on income within the standard rate band (€44,000 for a single person, €53,000 for a married couple with one income, €88,000 for a married couple with two incomes).
• 40% on income above the band.
• USC: 0.5%–8% depending on income.
• PRSI: 4.1% for self-employed or trading income.

💡 Irish Tax Hub Tip: The classification between Case I and Case V can make a big difference to your final tax bill. At Irish Tax Hub, we review your Airbnb activity and make sure it’s categorised in the most tax-efficient way — while staying fully compliant with Revenue.

Declaring Airbnb Income to Revenue

You must declare your Airbnb and short-term letting income to Revenue — even if you only rent for a few nights a year.

Filing process:

• PAYE hosts with occasional lettings: File a Form 12 through Revenue myAccount
• Regular hosts or those taxed under Case I: File a Form 11 via the Revenue Online Service (ROS) as a self-assessed taxpayer

Airbnb now automatically reports host earnings to Revenue under EU DAC7 rules. This means undeclared income is highly likely to be flagged.

💡 Irish Tax Hub Tip: Don’t risk penalties — our team handles the full Airbnb income declaration process, prepares your Form 11 or Form 12, claims all your allowable expenses, and ensures you pay the lowest legal tax possible.

Expenses You Can Deduct from Airbnb Income

Reducing your taxable income is key to maximising your profits. Allowable deductions for Airbnb income in Ireland can include:

• Mortgage interest (apportioned for rental use and rental period)
• Repairs and maintenance specific to the rental
• Utilities — electricity, heating, broadband (apportioned for guest use)
• Cleaning services and laundry
• Airbnb host fees and service charges
• Advertising and listing costs
• Insurance — property, landlord, and public liability cover
• Furnishings and appliances (under capital allowances rules)

💡 Irish Tax Hub Tip: Many Airbnb hosts underclaim expenses simply because they’re unsure what’s allowable. We audit your hosting expenses line-by-line to ensure you claim everything you’re entitled to — increasing your tax savings.

VAT on Short-Term Letting Income

If your Airbnb or short-term letting income exceeds €37,500 in a 12-month period, you may be required to register for VAT at the 9% tourism rate (subject to Budget changes).

VAT rules can be tricky — especially if you also earn other self-employed income.

💡 Irish Tax Hub Tip: We manage VAT registration, filing, and compliance for Airbnb hosts so you can focus on running your rental instead of worrying about tax returns.

Planning Permission & Local Rules

In Rent Pressure Zones (RPZs), short-term letting an entire property for more than 90 days a year may require planning permission.

You may also need to register with Fáilte Ireland under short-term tourist accommodation rules.

Failing to comply can result in:

• Fines from local authorities
• Enforcement action
• Potential Revenue audits

Penalties for Not Declaring Airbnb Income

If you fail to declare Airbnb income:

• Revenue can charge interest on unpaid tax
• Penalties can be up to 100% of the unpaid tax
• You may be subject to a full Revenue investigation

With Airbnb now reporting all earnings to Revenue, non-compliance is high-risk.

💡 Irish Tax Hub Tip: We not only handle current-year returns — we also review the past 4 years to ensure your Airbnb income is correctly declared and all refunds due are claimed.

Final Word – Keep Airbnb Profits, Lose the Tax Stress

Earning from Airbnb in Ireland can be highly rewarding, but without careful tax planning, Revenue could take more than its fair share.

At Irish Tax Hub, we:

• Declare your Airbnb income to Revenue correctly and on time
• Claim all allowable expenses and reliefs to cut your tax bill
• Advise on VAT, PRSI, and USC obligations
• Ensure compliance with DAC7 reporting rules
• Help you avoid penalties while maximising your after-tax profits

Thinking about your Airbnb tax? Contact Irish Tax Hub today — we’ll make sure you’re 100% compliant and paying only what you owe.