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Subletting

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  • 21-03-2016 3:57pm
    #1
    Young Blood
    Closed Accounts Posts: 393 ✭✭


    Has anyone here made a living subletting? I'm living in Barcelona at the moment and I can see some opportunities where I can live rent free by renting a 3-4 bedroom apartment and subletting to tenants. In theory it should work but in practice I'm sure there are some unforeseen obstacles that need to be overcome. Has anyone tried making a living from it?


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    #2
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Be careful, I don't know what the tax law is like in Spain, but in Ireland you're limited to 12k tax free under the rent-a-room scheme. Over that and the entire amount is taxable at your marginal rate plus USC, etc. If you're subletting the entire place then there's no tax free amount.


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    #3
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    Michael D Not Higgins wrote: »
    Be careful, I don't know what the tax law is like in Spain, but in Ireland you're limited to 12k tax free under the rent-a-room scheme. Over that and the entire amount is taxable at your marginal rate plus USC, etc. If you're subletting the entire place then there's no tax free amount.

    If you are sub-letting, the rent-a-room scheme wouldn't apply. Only a resident owner can use the rent-a-room scheme.


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    #4
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    RainyDay wrote: »
    If you are sub-letting, the rent-a-room scheme wouldn't apply. Only a resident owner can use the rent-a-room scheme.

    You don't have to be an owner, it just has to be your main residence.


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    #5
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    Michael D Not Higgins wrote: »
    You don't have to be an owner, it just has to be your main residence.

    You're right, I wasn't aware of that.


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    #6
    ED E
    Registered Users Posts: 36,167 ✭✭✭✭ED E


    Young Blood wrote: »
    Has anyone here made a living subletting? I'm living in Barcelona at the moment and I can see some opportunities where I can live rent free by renting a 3-4 bedroom apartment and subletting to tenants. In theory it should work but in practice I'm sure there are some unforeseen obstacles that need to be overcome. Has anyone tried making a living from it?

    If there was such easy money to be earned do you think the local landlords wouldn't have noticed and already be doing so themselves?


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    #7
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Young Blood- are you proposing to rent a property in Ireland- and sublet rooms to licensees- or in Spain........ It makes a big difference on several different fronts- notably how it might be treated from a tax perspective.

    With respect of the rent-a-room scheme- you have to be tax resident in Ireland to avail of the scheme (and the property has to be your principal primary residence- aka you can't live somewhere else in the main).

    The limit is currently 12,500 per annum- and once you go a penny over this amount- the entire sum is taxable at your marginal rate of tax.

    The 12,500 is inclusive of bill shares etc- these are not treated separately- aka its all money disbursed by a licensee to either the property owner, or the tenant of the property.

    You are not allowed offset any costs against rental income if you avail of this scheme (aka its freestanding- outside of normal business and tax obligations).

    If you're not talking about a property in Ireland- as you say you're in Spain- I'm going to have advise you find an appropriate venue to discuss your proposal elsewhere- as we don't have sufficient knowledge or backgrounds to assist you if this is a Spanish query.


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