Airbnb Rules in Ireland: Airbnb Laws, Taxes, and Regulations

Ireland – not just a travel destination, but a treasure trove of culture and charm! From the warm-hearted locals to the ruggedly romantic landscapes, there's something utterly lovable about the Emerald Isle. And hey, let's not forget about Dublin – the icing on the cake, crowned as a UNESCO City of Literature in 2010!

Now, get this: According to Ireland Tourism, the country rolled out the welcome mat for a whopping 11.9 million tourists in 2019. That's not just a crowd; it's a golden opportunity for savvy property investors to dip their toes into the short-term rental business. And if numbers speak louder than words, let's talk stats. The latest scoop from AirDNA reveals a tempting scene – 3,683 active rentals, with a sweet average daily rate of 187.9 Euros, rocking an occupancy rate of 66%, and an annual revenue hitting a cool 45.3K Euros.

So, you're on the verge of diving into the Irish short-term rental scene? Fantastic! But before you take the plunge, let's chat about the nitty-gritty – Airbnb regulations, laws and taxes. It's like knowing the secret sauce before cooking up a storm.

In a nutshell, Ireland is not just a picturesque haven; it's a hotspot for savvy property investors. The short-term rental market is buzzing, and with the right knowledge about the rules of the game, you could be on your way to turning that Irish dream into a golden reality. Ready to unravel the Airbnb mysteries in Ireland? Let's do this!

What Is a Short-Term Rental in Ireland?

Short-term letting pertains to the rental of a house, flat, or a portion of it, for a duration 14 days or less. This may include the sharing of a primary residence. Notably, short-term rentals in Dublin are restricted to a maximum of 90 days.

What Are the Requirements for a Short-Term Rental in Ireland?

General regulations and permissions

If you're in the business of renting out your place for short-term stays, you might have to go through the hoops of getting planning permission from your local authority or applying for an exemption. This applies whether you're renting out the entire property or just a room. And, oh yes, there could be some tax considerations in the mix when you're offering short-term accommodations to guests.

Now, these rules didn't just fall from the sky; they're rooted in regulations rolled out back in July 2019. The goal? To steer properties used for short-term tourist stays in Rent Pressure Zones (RPZs) back into the long-term rental market. Picture RPZs as those areas where rents are hitting the roof and shooting up rapidly. So, as long as RPZs are a thing, these regulations will keep on keeping on.

Under the regulations:

• If you share a spare room or rooms in your own home (your "Principal Primary Residence" or "PPR"), you can do so all year round but you must register with your local authority annually

• If you share your entire PPR while you are away, you can do so for up to 90 days of the year, but you must notify your local authority

• If you share your entire PPR for more than 90 days of the year, you must apply for a change of use planning permission from your local authority

• If you own a property that is not your PPR, and you use it for short-term letting, you must apply for a change of use planning permission from your local authority

• If you are not the legal owner of the property, you will need to attach the owner’s consent to use the property for the short term letting

Notification requirements: The new regulations require that Hosts listing a room or rooms in their PPR, or an entire PPR in an RPZ, must inform their local authority. The notification form (Form 15) is available at the relevant local authority.

Exemptions from the planning permission requirements

• The property is not in a Rent Pressure Zone (RPZ)

• The property is in an RPZ, but you let rooms or the entire property out for 15 days or more at a time.

• The property already has planning permission to be used for tourism or short-term letting purposes.

• The property is used for corporate or executive lets.

• The property is under the rent-a-room scheme.

• The property is under ‘home-sharing’ where a homeowner rents a room or rooms in their principal private residence for short-term lets while they are also occupying it.

• The entire principal private property is rented out for short-term guests less than 90 days a year while temporarily away which does not need to be necessarily consecutive.

• The property is purpose-built student accommodation which ideally requires planning permission. This means the accommodation is reserved for students however short stays are allowed outside the academic year and still requires to apply for planning permission from the local authority.

How to apply?

• Fill in a planning form that is available on your local authority website

• Submit the completed form and required documents to the Planning Department of your local authority

For new short-term letting use, it is important to apply for Planning permission. However, for existing unauthorized short-term use, it is required to apply for retention permission. This application process takes about 8 weeks.

Keep in mind, the Planning permission is unlikely to be granted based on a number of factors such as high housing demand, high rent inflation, insufficient supply and overload of the planning application. If this is the case, you can appeal a planning permission decision to An Bord Pleanala. For more details, go through An Bord Pleanala’s Guide to Making a Planning Appeal.

Additionally, if you want the lowdown on these fresh regulations, check out the Frequently Asked Questions (FAQs) on the new regulation of short-term lettings by the Department of Housing, Local Government and Heritage.

Proposed revisions to short-term let regulations

Additional laws regarding short-term rentals were set to kick in on September 1, 2022, but there's been a hold-up. Once these rules come into play, online platforms like Airbnb won't be allowed to showcase properties for short-term lets unless those properties have the proper planning permission.

Airbnb unveils updated housing regulations in Ireland

Airbnb pledges to assist Ireland in enforcing short-term rental rules and commits to the Airbnb Community Tourism and Housing Protection Plan.

The plan includes commitments to create a single Host register, adopt a community-led tourism approach, implement tools to address noise and nuisance, and partner with the tourism sector and government to diversify tourism.

Airbnb aims to support everyday families, address housing challenges, and contribute positively to Irish communities.

Other rules

Contractual agreements and permits

Any contracts signed as sometimes leases, contracts, building regulations and community rules have strict policies against subletting or hosting. Contact the landlord, community, or other authority if applicable.

More so, request addition to lease or contract if required clarity about concerns, responsibilities, and liabilities for all parties.

Mortgage restrictions

Check with the lender if there are no restrictions against subletting or hosting if the property has a mortgage or any form of a loan.

Subsidized housing restrictions

Subsidized housing ideally has guidelines that forbid subletting without any permission. It is important to first check with the housing authority or housing association if you are living in a subsidized housing community and keen on becoming a host.

Housemates

If you are sharing a home with others, do take the time to create a formal housemate agreement with your housemates mentioning expectations, how often you plan to host, guest etiquette, whether revenues are shared, and more.

EU Consumer Protection Law

When you commercially offer goods or services online, especially when hosting through Airbnb, it is considered a service. Therefore, take note, based on the EU consumer protection law, it is required to provide your guests with specific information. And to help you decide whether you should identify as a hospitality expert and understand your responsibility to protect consumers in the EU, tools and information are provided.

Misuse

Appropriate actions will be taken if anyone is notified of potential misuse and with that, to help the local authorities reporting housing misuse, guidelines are provided.

Occupancy Limits

Check your local government for guidelines to establish safe occupancy limits.

Safety

The safety of the hosts and their guests is of utmost importance to Airbnb. It is highly recommended to improve guests’ peace of mind by a few simple preparations like emergency instructions and noting any potential hazards.

The safety of the hosts and their guests is of utmost importance to Airbnb. It is highly recommended to improve guests’ peace of mind by a few simple preparations like emergency instructions and noting any potential hazards.

Emergency contact information

Include a contact list with the following phone numbers:

• Local emergency numbers

• The number for the nearest hospital

• Your contact number

• A number for a backup contact (in case guests can’t reach you)

In case of an emergency, it is ideal to ensure guests what is the best way to contact you. More so, as a safe alternative, you can also communicate with guests using messages on Airbnb.

Medical supplies

It is important to inform guests of the location of the first aid kit. Regularly check and restock supplies if necessary.

Fire prevention

Follow any applicable gas safety regulations and working carbon monoxide detectors if you are providing any gas appliances in the short-term property. Also, ensure to provide a fire extinguisher and maintain it frequently. For more information on fire safety guidelines, visit Irelands’ Residential Tenancies Board.

Exits

Post a visible clear marked fire escape route to ensure the guests’ safety.

Hazard prevention

Here are some ways you can help prevent potential hazards:

• Inspect your home to identify any areas where guests might trip or fall

• Remove the hazards you identify or mark them clearly

• Fix any exposed wires

• Make sure your stairs are safe and have railings

• Remove or lock up any objects that may be dangerous to your guests

Child safety

Some guests travel along with their children or infants. It is important to clearly mention in your Airbnb Listing details on the section of Additional notes specifying potential hazards or indicating the property is not suitable for children and infants.

Climate control

During the guest’s stay, ensure appliances such as heaters and air conditioners are in working condition as it can greatly affect your guests’ comfort. Mentioned below are a few ways to ensure your guests stay comfortable:

• Make sure your home is properly ventilated

• Provide instructions on how to safely use the heater and air conditioning

• Check that the thermostat is working correctly and make sure that guests know where to find it

• Service the appliances regularly

Insurance

Host damage protection and host liability insurance

AirCover generally includes Host damage protection and Host liability insurance providing the basic coverage for listed damages and liabilities. Though, it does not cover or replace homeowner’s insurance, renter’s insurance, or adequate liability coverage.

It is preferably and highly recommended for all hosts to review and understand the terms of their insurance policy coverage as not all insurance plans will cover the damage or loss of property caused by guests.

Liability and basic coverage

Make sure your listing has adequate liability coverage and property protection, kindly review your homeowner’s or renter’s policy with an insurance agent or carrier.

Consequences for Breaching Short-Term Rental Regulations

The government approved a new short-term rental proposal last December 2022 to address housing shortages in Rent Pressured Zones. The proposal includes a registration system to manage short-term rental accommodations in Ireland.

Landlords can rent out their property for an additional six months during planning permission review. For rentals up to 12 nights, landlords must register with Failte Ireland.

The bill introduces updated fines and penalties for regulation enforcement, including a €5,000 fine for illegally advertising unregistered properties. Failte Ireland may impose a €300 penalty for an invalid registration number.

The law, which intends to open up 12,000 houses for long-term rentals in Ireland, is facing a delay in becoming active. The Irish Times reported that its enactment is on hold for nine more months due to pending approval from the European Union.

Taxes and Fees in Ireland

National taxes

Tax obligations vary depending on your particular circumstances as it is quite a complex topic. Highly recommend researching your obligations or seeking advice from a tax professional to get more information.

Airbnb short-term rentals in general are considered taxable income and may be subjected to different taxes such as rental tax, income tax, or VAT.

In Ireland, tax forms are due every 31st of October, yearly. To find out if you require to declare the amount you earn from hosting which can be found in your host earnings summary, it is best to check with the Irish Revenue Department first. Additionally, you can check if you are eligible for other credits like tax reliefs and allowances.

Reporting obligations

Under Sections 888 and 890 of the Taxes Consolidation Act 1997, Airbnb is legally required to deliver information in relation to Irish host earning yearly to the Irish Revenue which includes:

• All rental income earned by the Irish resident hosts in respect of both Irish and foreign listings

• All rental income earned by non-Irish resident hosts in respect of Irish listings.

Reports and cover earnings for the previous years is due every September of the year whereas any received Irish host earning during the calendar year, Airbnb is obliged to provide the Irish Revenue Department the following details:

• First and last name

• Address of your listing/listings

• Address associated with your payout methods

• Amounts paid out in the reportable year including cleaning fees

• Date of your first booking during the reportable year, by listing

Airbnb is obliged to provide the Irish Revenue the following details below due to a change to Section 889 of the Taxes Consolidation Act 1997 which was implemented in 2019, for periods from January 1, 2020.

• PPSN (if an individual)/ tax reference (if a business)

• The Local Property Tax ID of the property listed

To find out more on the Local Property Tax ID, please visit the Irish Revenue website.

Free tax guide

Refer to the free tax guide covering general tax information in Ireland provided by Airbnb partnered with a third-party accounting firm.

Rent-a-room relief

Under Section 216A of the Tax Consolidation Act 1997, income which does not exceed 14,000 Euros in a year that hosts earned by renting a room for residential purposes in an individual’s sole or main residence may be subject to relief from income tax and other fiscal obligations as long as certain conditions are satisfied.

On top of that, the Revenue issued their interpretation of Section 216A in February 2015, in a guidance note stating short-term rental income from occasional visitors does not qualify for the relief due to the accommodation being used as a guest space rather than a residential purpose. This view is now confirmed and subject to some exceptions, by a change that was made to Section 216A made by the Finance Act 2018.

Frequently Asked Questions

1. How long does it typically take to get Airbnb planning permission in Ireland?

While the article mentions a rough 8-week timeline, actual approval time can vary significantly based on local authority backlogs and the complexity of the request. It’s wise to plan for potential delays of several months.

2. Can I list a property in Ireland on Airbnb if I’m a non-resident or foreign investor?

Yes, but you’ll still be subject to the same planning permission requirements, local taxes, and reporting obligations. You may also face additional legal or banking considerations around payouts and compliance.

3. What happens if I rent out my entire primary residence in Ireland for more than 90 days without planning permission?

You’ll be in violation of short-term letting regulations and may face enforcement actions from your local authority. To continue renting beyond 90 days, you must apply for a change of use planning permission.

4. What are the penalties for listing a short-term rental without proper registration in Ireland?

If you advertise a property without valid planning permission (once new laws take effect), you may face a €5,000 fine. Additionally, Failte Ireland can issue a €300 penalty for listings with invalid registration numbers.