Rent-a-Room Relief allows individuals to rent out a room or a flat in their primary residence and earn up to €14,000 per year tax-free, provided the following conditions are met:

  1. Property Requirements:
    • The rented room(s) must be in your primary residence (the home you live in).
    • The rental must be long-term, meaning you’re renting to a tenant for a sustained period (e.g., a student or professional), not for short-term lets like Airbnb.
  2. Income Limit:
    • The total gross rental income from all rooms must not exceed €14,000 in a tax year.
    • If your income exceeds €14,000, the entire amount becomes taxable, not just the excess.
  3. Exclusions:
    • Rent-a-Room Relief does not apply to short-term rentals (such as those listed on Airbnb or for holiday purposes).
    • You cannot claim relief if you are renting to family members (e.g., children, spouse) without a formal lease agreement.
  4. Claiming Rent-a-Room Relief:
    • If you meet the conditions, you do not need to declare the rental income on your tax return, unless you are already required to file a return for other reasons (such as additional income or self-employment).
    • If you choose to declare the income, you can report it in the Exempt Income section of your tax return.

Important Notes:

  • Even if the income is exempt under Rent-a-Room Relief, the room must still meet health and safety standards, and you must comply with local rental laws.
  • Rent-a-Room Relief applies per property—if you jointly own the property, the €14,000 limit applies to the combined rental income.