• Long-Term Letting: Rental income is taxed under Schedule D Case V. You must declare the rental income on your annual tax return and can deduct allowable expenses, including mortgage interest (up to 75%, subject to conditions), repairs, property management fees, insurance, and other costs directly related to the property.
  • Rent-a-Room Relief: If renting out a room in your primary residence, you can earn up to €14,000 tax-free. This only applies if the property is your primary residence, and the rental is long-term. It does not apply to short-term lets like Airbnb.
  • Short-Term Letting (e.g., Airbnb): Income from short-term lets is treated as trading income, not rental income. This must be declared on your tax return and taxed accordingly. If your income exceeds €42,500, you must register for VAT and charge VAT on the accommodation provided.
  • Filing Your Tax Return: If you’re a PAYE taxpayer with rental income, file Form 12. For self-employed individuals or those with multiple sources of income, file Form 11.