Is Airbnb income taxed differently from traditional rental income?

Yes, Airbnb income is treated as trading income (Case 1) rather than rental income (Case V). This means losses from Airbnb can be offset against other trading income, unlike rental losses which can only offset other rental income.

• VAT may apply if your annual turnover from short-term letting exceeds €42,500.
• Allowable Expenses include cleaning costs, Airbnb service fees, repairs (not improvements), and insurance specific to short-term letting.
• Tax Filing: Airbnb income is declared on Form 11, and you can claim the usual rental-related deductions.
• CGT: If you use your property for Airbnb, it may affect your Capital Gains Tax (CGT) exemption on your Principal Private Residence (PPR). The portion of the property used for Airbnb may lose its CGT exemption when you sell the property.