How short-let income is taxed in Ireland

Updated 27 September 2026. Many owners assume that money from guests is taxed like rent from a tenant. In Ireland it is not, and the difference affects which costs you can deduct, which reliefs you lose and which form you file. This article follows Revenue's own guidance on income from short-term accommodation, last updated in September 2026. It is general information, not personal tax advice.

Guests are not tenants

Revenue's starting point is that a short-stay guest occupies the property as a guest, not under a tenancy. The income therefore does not fall under the rules for rental income. Instead it is taxed in one of two ways, depending on how you operate.

Case I: when letting is a trade

If the property or room is expected to be available for bookings frequently and regularly, and you run it commercially, advertising, handling bookings and providing services, Revenue treats the activity as a trade taxed under Case I of Schedule D. That brings the usual trading rules:

• Expenses laid out wholly and exclusively for the trade are deductible: cleaning, laundry, platform commission, management fees, utilities attributable to the let, repairs, insurance.
• Capital allowances are available on plant, fixtures and furnishings, at 12.5% a year over eight years — a rate set by section 23 of the Finance Act 2003 for capital expenditure incurred on or after 4 December 2002.
• Costs incurred up to three years before the trade started can be claimed as pre-trading expenses.

Case IV: occasional income

If you let on a once-off, casual or occasional basis, the income is taxed under Case IV. The deductions are narrower: only incidental costs directly linked to providing the accommodation, such as cleaning, commission and the cost of breakfast. There are no capital allowances and no pre-trading expenses. For an owner who lets for a festival week or while travelling, this is the likely category.

Rent-a-room relief does not apply

Revenue is explicit: rent-a-room relief is not available for rooms used to provide short-term guest accommodation. The relief remains for lodgers who live with you on a longer basis, which is also one of the situations exempt from short-let planning rules. Mixing the two in the same room in the same year is a recipe for confusion; keep them separate.

Filing: which form

• PAYE employees with modest additional income usually declare it on Form 12 through myAccount.
• The self-employed, company directors and anyone with several income sources file Form 11 through ROS.
• A paper annual return remains possible in some cases.

Profit, not turnover, is what you are taxed on, so the quality of your records directly affects the bill. Returns for a given year are filed in the following year, so the income you earn in 2026 is declared in 2027.

Revenue already sees the payouts

Under the EU DAC7 rules, digital platforms report the earnings of hosts, including those letting property, to tax authorities. Revenue receives this information automatically, and it can compare it with what you declare. Assume every platform payout is visible.

VAT is not only for hotels

Short-term guest accommodation is a service, and VAT registration becomes relevant when turnover from services exceeds the threshold, which Revenue sets at €42,500 a year from 1 January 2025. Owners with several units, or who include cleaning and extras in the price, should check their position before they cross it rather than after.

Owners living outside Ireland

Income from an Irish property generally remains taxable in Ireland even if you live abroad, and your country of residence may tax it too, with relief under a double taxation treaty where one exists. The combination of Irish filing and foreign reporting is worth planning with an adviser who knows both systems.

Records worth keeping

• A booking log: dates, nights, guest numbers, platform and gross price.
• Monthly platform statements showing commission and payouts.
• Invoices for cleaning, linen, repairs, utilities, insurance and management.
• Receipts for furniture and equipment, with purchase dates, for capital allowances.
• A note of personal-use days, which affect how shared costs are apportioned.

Tax does not replace planning

Declaring the income correctly does not make an unauthorised let legal. With the national register due to open on 1 December 2026, planning, registration and tax will be visible side by side. If you want an operator who keeps clean monthly statements for your accountant, tell us about your property; we study every request and tell you honestly whether and how we can help.