How it works

Once you get the keys and move into your place, this is the most effective tool available to instantly lower your monthly outgoings. It allows you to bring in a flatmate or licensee and earn up to €14,000 a calendar year completely tax-free. Every single euro earned under this threshold is entirely exempt from income tax, USC, and PRSI. Having this option provides a permanent financial buffer that takes the pressure off your monthly budget, letting your property help pay for itself while you stay fully in control of your space.

The rules

To qualify, the property must be your primary home where you actually live, and the arrangement has to be for long-term residential use — meaning short-term stays under 28 consecutive days are ruled out. The critical detail to watch is that the €14,000 limit is a strict gross cap. This means it must include absolutely everything your flatmate pays you, including rent, utility contributions, broadband, and bills. If your total collection goes even a single euro over the limit in a calendar year, the entire tax relief vanishes and the whole lot gets taxed at your standard rate.

The maths

If you rent out your spare room for €1,100 a month, you will pull in €13,200 over the course of the year. Because that total sits safely under the €14,000 limit, you keep every single cent completely tax-free.

However, if you charge €1,150 a month and your flatmate gives you an extra €30 a month to cover their share of the bills, your total annual intake hits €14,160. Because you went over the line by just €160, the entire tax exemption is lost, and you will owe income tax on the full €14,160. Make sure to keep it under the cap to keep it as pure profit.