What Being An Airbnb Host Means for Your Taxes

If you’re an Airbnb host or have been in the past, you need to be aware that Airbnb has announced they are legally required to inform the Revenue Commissioners with details of Irish homeowner’s income derived from them.

Previously, many Airbnb hosts believed these monies were not subject to tax, as they believed they were entitled to the Rent a Room Relief tax exemption (which is a €12,000 tax free threshold for those letting rooms).

However, Revenue have clarified that short-term lets to guests including where such accommodation is provided through online accommodation booking sites, do not fall within the terms of Rent a Room Relief.

How will Airbnb hosts be taxed?

The rate of tax applicable will depend on what other sources of income is earned by each host, as all income must be declared in your Income Tax Return i.e. whether you are liable at the standard rate of tax or the higher rate of tax.

Can I claim any relief?

Allowable expenses can be off-set against Airbnb income so therefore, hosts are advised to retain all receipts in relation to expenses incurred through the activity of being an Airbnb host.

What do hosts need to do?

If this is your first time filing, here are the basic details you need to know:

•  If you do not receive an Income Tax Return Form from the Revenue, it is your own responsibility to source and complete a form.

•  The income from Airbnb is considered trading income rather than rental income and so should be detailed under this section.

•  The 2022 tax return is due to be filed by the 31st of October 2023.

We hope this helps you understand your tax obligations as an Airbnb host. For more tax advice, or for help in filing your income tax return, contact our expert team today.