Revenue Clampdown on Airbnb Income

Temporary Hosts – Permanent Fines

We have spoken at length about the so-called Revenue crack down, as Revenue continue to battle against evasion and fraud in all its forms. The latest to feel the Revenue wrath will be Airbnb hosts as Revenue have begun contacting hosts in writing regarding undeclared income.

Following on from the financial crisis, many individuals have sought additional income to offset the damage done by the crash. In addition, the ever-increasing cost of housing and cost of living we have recently discussed have left many with little option but to rent their properties out to cover costs and perhaps gain some additional income. Whilst this is a necessity for many, there has also grown over the past couple of years a penchant for the renovation of properties for use on short term rental sites such as Airbnb.

Airbnb can be a safe and convenient source of additional income for many, but has been seen as somewhat of a grey area for taxation purposes for some time, with many unaware of how to declare this income. Earlier this year it was announced that a number of Irish Airbnb hosts would be facing penalties due to a lack of awareness of how to declare their income from this source. It was revealed at the same time that quite a large number of hosts were not declaring the income as they may have been unaware of their requirement to do so. There are also a number of cost deductions which hosts are entitled to claim, but many were unaware of this also.

Luckily, Revenue have recently clarified this issue which will be valuable information for all of our clients and friends who are Airbnb hosts. In recently issued guidelines Revenue have stated the following in relation to Airbnb properties:

Rent a Room Relief can NOT be claimed on Airbnb lettings.

Airbnb lettings should NOT be treated as Case V rental income.

Airbnb lettings should in fact be treated as either:

  • Case I – Trading income for a property which is let frequently.


  • Case IV – Miscellaneous income for lettings which are sporadic or occasional.

As Revenue continue to clamp down on evasion, non-declaration and general taxation issues, this is vital information for all Airbnb hosts in Ireland to be aware of going forward. As always we advise keeping thorough records and ensuring that you have all documentation to hand well in advance of your filing date.

Should you have any queries or require further information on this or any other business or financial matter please don’t hesitate to contact us here at EcovisDCA’s new head office, where as always we will be delighted to help.

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