Irish AIRBNB Hosts Should Be Aware of Their Tax Obligations

As an Airbnb host in Ireland, it is important to be aware of the Irish tax obligations associated with this income. Short term lettings are deemed to be trading income in Ireland. Irish rental income is subject to tax under what is known as Schedule D, Case V which is part of the Taxes Consolidation Act 1997.  The amount of profit, after deduction of allowable expenses determines whether you are obliged to submit a Form 11 or Form 12 to Irish Revenue.

Revenue Filling Obligations

Form 12:

If your Airbnb taxable profit is below €5,000 for the year, you can submit this information on a Form 12 for tax reporting purposes.

Form 11:

If your Airbnb taxable profit is above €5,000 for the year, you are obliged to submit this information on a Form 11 for tax reporting purposes.

Allowable Deductible Expenses:

As an Airbnb host in Ireland, you can only deduct certain allowable expenses from your Airbnb gross income to reduce your taxable profit. A deductible or allowable expense is one that has actually been incurred and is not regarded as capital in nature.  Allowable deductible expenses may include, but are not limited to:

  • Airbnb insurance premiums
  • Repairs, maintenance, and cleaning costs associated with the letting of the property
  • The cost of goods or services provided by you to guests – e.g. gas, electricity, tv or internet etc.
  • Property management fees
  • Advertising fees or online commission payments. The Airbnb service fee will also qualify as a deductible expense.

Only allowable expenses incurred in respect of the period the property is let can be deducted in calculating taxable rental income. Pre-letting expenses (with certain exceptions) and post-letting expenses are not allowed as deductions. Allowable expenses incurred between lettings are allowed as deductions but only to the extent that they are directly related to the period in which the accommodation is let. Therefore, where on-going expenses such as electricity, gas etc. are incurred only the portion relating to the period the property is let can be deducted. It will be necessary to pro-rata the expense on a reasonable basis to calculate the portion relating to the period the property was rented. It will also be necessary to keep records of this calculation.

Where an individual is in receipt of rental income from the letting of an Irish property and they are living outside Ireland, the Irish rental income is still subject to tax in Ireland.

Seeking guidance from and Irish tax professional, such as ourselves, can ensure accurate reporting and help you avoid penalties or unnecessary complications.

 

Compliance and Record-Keeping

An Airbnb host can refer to this Airbnb Help Centre article as a guide to accessing their reservation and transaction history in order to calculate their gross rental income for any particular period.

Maintaining proper records is essential for Airbnb hosts in Ireland. It is recommended to keep a detailed record of your rental activity, income, expenses, and relevant documentation. This includes records of bookings, receipts, invoices, and proof of expenses.

 

Tax Support with your AIRBNB Tax Return

Irish AIRBNB hosts can Contact Us today to ensure you are meeting your Irish tax obligations regarding your Irish AIRBNB income.