Pearse Doherty (Donegal, Sinn Fein)
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26. To ask the Minister for Finance the total revenue collected in the recent year from the taxation of rental income from short-term rentals and how that income has evolved over recent years; and if he will make a statement on the matter. [5089/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that Schedule D of the Taxes Consolidation Act 1997 sets out various cases under which taxes are charged. Income earned from the provision of short-term accommodation for occasional visitors, such as through an online accommodation booking system, is not considered rental income under Case V and is instead taxable as:

- Case IV (other income) where the income is occasional, or

- Case I (trading income) where an ongoing trade is being undertaken.

Income from short-term rentals is, therefore, reported to Revenue along with other taxable income under the relevant cases, whether for the purposes of income tax or corporation tax. For this reason, Revenue is unable to isolate the total revenue collected from taxation of income from short-term lettings.

I am further advised that Revenue is supported in assuring taxpayer compliance in relation to such income by the requirement imposed on letting agents and letting managers (including internet intermediaries) located in Ireland to make annual returns detailing such activity by way of a dedicated third-party return (Form 8-3).

Most recently, the situation has been further strengthened through the introduction of European Council Directive (EU) 2021/514 (DAC7) and the Model Reporting Rules for Digital Platform Operators (MRDP). These respective European Union and global (OECD) requirements introduce reporting obligations on platforms that allow sellers to be connected with customers for the provision of the rental of immovable property (e.g. accommodation). DAC7 and the MRDP provide for the cross-border exchange of the reported information between tax administrations in the EU and globally. The first exchange of information under the DAC7 occurred in February 2024. The first exchange of information under the OECD MRDP will take place by March 2025.