Tralee: A tax expert in Kerry is urging homeowners to take advantage of a tax-free earning opportunity of up to €14,000 per year through the ‘rent-a-room’ scheme.
According to Tommy Walsh, a tax partner with Orbitus Tax in Tralee, the scheme provides a simple and effective way for people to supplement their income while also addressing the pressing need for student accommodation.
The ‘rent-a-room’ relief allows homeowners or sub-letters to earn a tax-free income by renting out a spare bedroom or a self-contained unit, such as a converted garage or attic flat, to private tenants.
To be eligible for the relief, the property must be the main residence of the person renting it out. Additionally, the total annual rental income cannot exceed the €14,000 exemption limit.
Mr. Walsh emphasized that while the scheme is straightforward, it is essential for individuals to be aware of and adhere to the specific conditions to qualify for the tax relief.
