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Local Licensing Options

**The laws concerning local licensing change on 27 Nov 2014 and property owners who wish to continue renting must make some choices**:red

Renting properties for short term rentals (less than 30 days) will now be considered to be a business. All businesses must be registered and taxed.

There are two main rental regimes which property owners should bear in mind:

+Long-term rental (over 30 days each) is still considered to be a passive activity and does not require registration as a business and these rentals are not chargeable to IVA.

+Short-term rental is a business activity which must have an AL licence and invoices and accounts must be produced. The entity (person or company) operating the licence may be different from the owner. If the invoices surpass €10K p.a. then IVA must be charged at 6% (although IVA paid out may be deducted, as is the case for any business).

A. Renting by Non-Resident Corporate Owner

In general it is NOT a