I have just bought an apartment and am in 2 minds whether to live in 1 of the 2 rooms myself, and rent out the other one, the other option being to rent it all out. I am paying only €200 pm at the moment and this will not rise further. My question is this: what are the tax implications of renting the apartment out, versus living in it myself and renting only 1 room out? Will my PAYE payments go up in any case?
You will be liable for a clawback of stamp duty if you rent the property out fully or take in more than the rent a room scheme limit of €7,620 p.a. in rental income. Your rental income (less allowable expenses) would be assessable for income tax. Any eventual capital gain on selling the property would be assessable for CGT.