Can my adult son sublet our rental property?

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Redoranges

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We have had a rental property for many years. We have been RTB and tax compliant always. The previous tenants have given notice as they are purchasing their own house. We are planning to move our adult son who is 20 years and a full time student into the house as the tenant. The house is a lot closer to his university and he is still living at home as he can't find rental accomodation near his college. Can we register him as the tenant with the RTB and then, can he sublet the other rooms to other students? He will then pay us the same rent that the previous tenants paid, which we will declare for tax. Because the house is in a Rent pressure Zone and we cannot increase the tenants rent, renting out the other 3 rooms in the house - it is a 4 bed house - will mean his rental income from his subletting, will generate an income for him after he pays us the rent. Maybe 8,000 a year. He currently only has a small income from summer work. If he pays tax on the rental income, are we both parents and adult son, tax compliant? I.e is this arrangement legal?
 
Redoranges said:
The current rent was 1375 euros which we can not increase due to house being in a rent pressure zone.
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If you want to return to the normal market eventually then it makes sense for the property not to be registered with the RTB for at least two years.

If your son is occupant he can take in up to €14,000 a year tax free under the rent a room scheme. He doesn't have to be the owner. Staying under the €14k ceiling is probably simpler than having him file tax returns.

The arrangement you have with your own son is your own business once it's tax compliant. A scenario where a child occupies a parent's property at zero or nominal rent with no rental contract in place is extremely common.
 
Question follow on this, would the son be able then to give a tax free gift of €3000 to each of his parents if needed? I would think so but perhaps I am wrong.
 
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I thought the free use of a property is considered a gift of the rental potential of the property for Gift tax ( less small gift exemption)
 
Yes he can do rent a room for under 14k. Its easier but needs a clear agreed document that is not a lease to give to renters. Will not qualify when over 23 I think and out of fulltime education.
 
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