What is rent-a-room relief?
Rent-a-room allows you to earn up to €14,000 per year, without having to pay tax, should you decide to let a room in your private home to a tenant. Within the context of rent-a-room relief, it is also applicable to self-contained units, such as basements or garages.
How do I qualify for the relief?
You must meet certain criteria in order to qualify for relief scheme as listed below:
- Your property must be registered in Ireland
- Your home must be your sole residence, i.e., you must occupy it for the majority of the year.
- Within the tax year (1st January to 31st December), you cannot make more than €14,000 letting out the space.
- The person/persons you are letting the room to must be occupying the room on a long-term basis.
What exempts me from rent-a-room relief?
There are, conversely, certain restrictions that would prevent you from availing of rent-a-room relief. These include:
- If you earn more than €14,000 per tax year from letting out the room. In the event that your earnings exceed the €14,000 limit, Revenue will treat the full rental income, deducting the allowable expenses, as part of your total income for tax purposes.
- If you are renting the room to your civil partner or child. No restrictions for other family members apply, however.
- If you are letting the property temporarily via a short-term letting platform, such as AirBnB. This is because those who avail of the room for short trips/vacations would be considered visitors, as opposed to being tenants.
How can I apply for rent-a-room relief?
To apply for rent-a-room relief, you must record your rental income when making your annual tax return to Revenue.
Should you have difficulties filling out the relevant forms, or if you have further questions about rent-a-room relief, the tax office can be easily contacted via phone or email to answer any queries.
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