Remiting your airbnb earnings abroad

[frugality123]

Hi all,

I am a non domiciled Irish tax resident. I am looking to rent out 2 rooms on Airbnb in my principle residence and my airbnb account is connected to an Indian bank account so all the earnings would get remitted directly to India. In this case would I pay tax in Ireland or in India. I know all Irish rental income for long term rent is taxable in Ireland, what about Airbnb income if it never comes into Ireland? As a non domicile I know that money not remitted to Ireland is non taxable in Ireland but as the income is coming from Ireland I guess I would still need to pay taxes in Ireland and not in India?

 

[AAAContributor]

As a non domicile I know that money not remitted to Ireland is non taxable in Ireland but as the income is coming from Ireland I guess I would still need to pay taxes in Ireland and not in India?

As far as I am aware that's correct.

Assuming the rooms you are letting out are in your residence in Ireland, the income thereon is Irish source income and will be liable to income tax, PRSI & USC in Ireland. Where you direct the income to be paid to is irrelevant I believe.

The question as to any Indian tax implications for you is for the Indian version of Askaboutmoney.com

How much income are you potentially talking about? Have you looked in to the rent-a-room scheme? You can earn up to €14,000 tax free through that scheme:

Rent-a-Room Relief

This page overviews rent a room relief.

www.revenue.ie