You can rent out a room in your home for up to €14,000 per annum tax free.
As long as the rent charged does not exceed €14,000 annually, you will not pay income tax, USC or PRSI on the rental income. There is no effect on the CGT exemption if you decide to sell your home.
The rented room can be a self-contained unit within the house, such as a basement flat or a converted garage. However, a unit that is not attached to the property will not qualify.
Short term stays provided through B&Bs, a guesthouse or online booking sites do not qualify for the relief.
There is a four year time limit to claim relief. This is important if you were paying tax all along on your rental income which should have been exempt.
Contact our tax department if you require assistance with the above.