Rent-a-Room Relief explained
If you let a room in the home you live in, the first €14,000 you earn from it in a year is free of income tax, USC and PRSI. It is the single best reason to let a spare room in Ireland, and the rules around it are simpler than most people expect.
Does a rent-a-room letting have to be registered with the RTB?
No. Somebody renting a room in your own home is a licensee rather than a tenant, so the tenancy does not have to be registered with the Residential Tenancies Board and the standard tenancy protections do not apply. That cuts both ways, so it is worth putting the arrangement in writing.
Do I have to declare rent-a-room income?
Yes. You declare it on your annual return even when it falls under the Rent-a-Room Relief threshold. Under the threshold it is relieved from income tax, USC and PRSI, but it still has to be returned.
Does Rent-a-Room Relief include money for bills?
Yes. Anything the licensee pays you counts towards the threshold, including contributions to heat, electricity, broadband and food. Go one euro over the threshold and the whole amount becomes taxable, not just the excess.
Am I a landlord if I rent out a room in my house?
Not in the legal sense. Letting a room in the home you live in makes you a licensor, and the person renting is a licensee. You do not need to register the tenancy and deposit protection rules for tenancies do not apply.
Is the rent-a-room scheme only for students?
No. It applies to anybody renting a room in your principal private residence. Plenty of rooms go to people working full time, on contracts, or newly arrived in Ireland.
Where can I post a room for rent for free?
RoomRent.ie lists a room free for seven days with no card needed, and you keep every euro of the rent because there is no commission.
This is general information, not tax advice. Revenue's own guidance is the authority, and an accountant is worth an hour of anybody's money the first year they let a room. List your room free for 7 days.