Galway, Ireland Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Galway, Ireland?

In recent years, Galway has introduced new regulations on short-term rentals like Airbnb and VRBO in an effort to address housing shortages and rising rents. These rules primarily impact properties in designated Rent Pressure Zones (RPZs).

Starting a Short-Term Rental Business in Galway

If you want to rent out your property for short stays under 14 days in Galway, you may need to obtain planning permission from the local authority first, especially if the property is located in an RPZ.

As of August 2023, only 6 out of over 600 short-term rental properties in Galway City had secured the legally-required planning permission, according to a city councillor. This equates to less than 1% compliance with the 2019 regulations requiring planning permission for short-term lets in RPZs.

There are some exemptions from the planning permission requirement:

• Homesharing (renting a room in your primary residence) is allowed without restriction
• You can rent your entire primary residence for up to 90 days per year while temporarily away

To avail of these exemptions, you must register with the local authority and fulfill reporting obligations. If you exceed the 90 day limit, you will need to apply for change-of-use planning permission.

Enforcement of the short-term letting rules has been lacking so far in Galway. According to one Reddit user, "A walk along any street in Galway shows the little key boxes on multiple properties. There's no will by the council to enforce the regulations."

However, new legislation was planned to take effect in September 2022 prohibiting online platforms like Airbnb from advertising unregistered short-term rentals. While delayed, this signals stricter enforcement may be on the horizon. One Galway property already had its application for short-term letting permission rejected.

If operating a short-term rental, you must also declare the income to Revenue for tax purposes each year, regardless of planning permission. Failure to comply with the regulations can result in fines or legal action.

In summary, anyone considering starting an Airbnb or short-term letting business in Galway, especially in a Rent Pressure Zone, should carefully review the regulations and apply for proper planning permission where required. With the housing crisis ongoing, a crackdown on unauthorized short-term rentals may be imminent as the city council faces pressure to return more properties to the long-term rental market.

Short-Term Rental Licensing Requirements in Galway

To operate a short-term rental (less than 14 days at a time) in Galway, you may need to obtain planning permission from the Galway City Council, especially if the property is located in a designated Rent Pressure Zone (RPZ). As of 2023, very few short-term rental properties in Galway had secured the legally-required planning permission according to a city councillor.

The requirements for short-term rental planning permission in Galway include:

1. Applying to the Galway City Council Planning Department
2. Paying the applicable planning application fee, which starts at €80 per building plus €3.60 per square meter
3. Providing details on the property and intended short-term rental use
4. Allowing 8 weeks for the council to assess the application and make a decision

There are some exemptions from needing planning permission:

1. If the entire home is rented for short-term lets for less than 90 days per year while the owner is temporarily away
2. If only a room is rented while the owner also occupies the home (homesharing)
3. In these exempt cases, you must still register with the local planning authority.

Fines and penalties may apply for operating a short-term rental without the proper planning permission. At least one application for short-term letting in Galway has already been rejected by the council.

It's important to note that enforcement of the regulations has been lacking so far, with many unauthorized short-term rentals still operating. However, new legislation planned for September 2022 (now delayed) would prohibit platforms like Airbnb from advertising unregistered properties without planning permission. This signals stricter enforcement may be coming.

To apply for short-term letting planning permission in Galway, contact the Planning Section of the Galway City Council at 091-536599 or planning@galwaycity.ie. Be sure to allow at least 8 weeks for processing. If not approved, you can appeal the decision within 4 weeks.

Keep in mind the regulations around short-term rentals in Ireland are still evolving. Monitor the Galway City Council website for the latest requirements and updates. Consulting with a local property lawyer can also help you navigate the planning permission process.

Required Documents for Galway Short-Term Rentals

To operate a short-term rental in Galway, especially in a designated Rent Pressure Zone, you may need to apply for planning permission or register for an exemption with the local authority. Here are the key documents required:

1. Planning Permission Application Form - This form, available on the Galway City Council website, is required to apply for planning permission to use your property for short-term lets. Submit it to the Planning Department along with the applicable fee, which starts at €80 per building plus €3.60 per square meter.
2. Form 15 – Start of Year Notification - If you qualify for an exemption from planning permission (renting for less than 90 days or just a room), you must submit this form to the Galway City Council within 4 weeks of the start of each year, and no later than 2 weeks before the first short-term let of the year.
3. Form 16 – 90 Day Threshold Notification - Homeowners temporarily away from their principal residence who reach the 90 day short-term letting limit in a year must submit this form to the council no more than 2 weeks after hitting the threshold.
4. Form 17 – End of Year Notification - Those availing of the planning permission exemption must submit this form to the local authority between January 1-28 of the year following the short-term lets.
5. Proof of Principal Private Residence - When registering for a planning permission exemption, you must provide documentation proving the rental property is your main home, not a second home or investment property. This could include utility bills, tax statements, etc. registered at that address.

These forms are available on the Galway City Council website and can be submitted by email, post, or online in some cases. The council's Planning Department can be reached at 091-536599 or planning@galwaycity.ie for questions.

Failing to obtain required planning permission or register for an exemption can result in fines and legal penalties. Be sure to review the latest regulations on the Galway City Council website when considering short-term letting.

Galway Short-Term Rental Taxes

If you operate a short-term rental in Galway, you must declare the income to Revenue and pay applicable taxes each year. Here are the main taxes that apply:

Income Tax

Rental income from short-term lets is subject to income tax. The rate you pay depends on your total taxable income and tax band:

1. 20% on income up to the standard rate cut-off point (€36,800 for single filers in 2023)
2. 40% on any income above the standard rate cut-off point

You can deduct allowable expenses from your gross rental income to calculate your taxable profit.

PRSI (Pay Related Social Insurance)

Short-term rental income is subject to PRSI at a rate of 4% on net rental profits. This applies to Irish tax residents.

USC (Universal Social Charge)

Rental profits are also subject to the Universal Social Charge. USC rates for 2023 are:

1. 0.5% on the first €12,012
2. 2% on €12,013 to €22,920
3. 4.5% on €22,921 to €70,044
4. 8% on income above €70,044

Your total USC liability depends on your overall income level and sources.

Deductions and Expenses

You can deduct allowable expenses from your gross short-term rental income to reduce your tax bill. Allowable costs include:

1. Mortgage interest
2. Maintenance and repairs
3. Insurance premiums
4. Property management fees
5. Utility bills
6. Advertising costs
7. Accounting fees
8. Cleaning fees
9. Local property tax

Be sure to keep records and receipts for all expenses claimed. Capital expenditures are not immediately deductible - they may qualify for wear and tear allowances spread over 8 years.

Reporting and Filing

You must report short-term rental income on your annual tax return:

1. Form 11 for self-assessed taxpayers via ROS (Revenue Online Service)
2. Form 12 for PAYE workers with non-PAYE income under €5000
3. The filing deadline is usually October 31 for the preceding tax year.

This is an overview of key tax considerations for short-term rentals in Galway. Always consult Revenue.ie or a qualified tax professional for the most up-to-date information and advice for your specific circumstances. Failure to comply with tax rules can result in penalties and interest.

Ireland Wide Short-Term Rental Rules

In addition to the specific regulations in Galway, there are several national laws and requirements that apply to short-term rental hosts across Ireland:

Planning and Development Act 2000

Under this act, local planning authorities can take legal action against short-term rental properties operating without the required planning permission or in violation of their permission terms. Penalties can include fines and enforcement notices to cease unauthorized use.

Proposed Registration of Short-Term Tourist Letting Bill

New legislation planned for late 2024 will require all short-term rental properties to register with Fáilte Ireland and obtain a unique registration number in order to be advertised on platforms like Airbnb. Key provisions include:

1. Mandatory registration for short-term lets rented for 21 nights or less per year
2. Applies to entire home rentals, private rooms, and multi-unit properties like apartment blocks
3. Hosts must confirm they have proper planning permission as part of registration
4. Booking platforms can only list properties with valid Fáilte Ireland registration numbers
5. Significant fines for non-compliant hosts and platforms

The goal is to bring more short-term rentals into compliance with planning rules and return 10,000-12,000 properties to the long-term housing market. Implementation has been delayed to address European Commission concerns around compatibility with EU law.

Tax Obligations

All short-term rental income must be declared to Revenue for income tax purposes each year, regardless of location. Rental profits are subject to income tax (20-40%), PRSI (4%), and Universal Social Charge (0.5-8%) based on the host's overall income level. Certain expenses like insurance, management fees, and repairs can be deducted.

Fire Safety

Short-term rental accommodations must comply with fire safety regulations, including having working smoke alarms, carbon monoxide detectors, fire blankets, and unobstructed exit routes. Properties may be subject to inspection by local fire authorities.

Insurance

It's strongly recommended that short-term rental hosts obtain public liability insurance to protect against guest injuries and property damage. Relying solely on a platform like Airbnb's built-in coverage is generally insufficient.

These national regulations work in tandem with local planning rules to provide oversight of the growing short-term letting market in Ireland. However, concerns remain about enforcement, impacts on local housing, and the balance between tourism and residential needs, especially in high-demand areas like Dublin, Galway, Cork, and other cities.

Does Galway Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit, it appears that Galway does not strictly enforce its short-term rental regulations, despite having rules in place requiring planning permission for most Airbnbs.

One Reddit user familiar with a particular Galway property stated, "Been used as short term let's from the day they were built. The original planning never mentioned that. Of course, there's no enforcement. According to Galway city council, only a handful of properties applied for short term let permission when the regulations changed. A walk along any street in Galway shows the little key boxes on multiple properties. There's no will by the council to enforce the regulations."

Another user pointed out a specific planning application for short-term letting that was refused by the Galway City Council. However, the general sentiment is that many unauthorized short-term rentals continue to operate without the legally required permissions.

Compared to cities like Lisbon that have implemented comprehensive licensing and enforcement systems in partnership with platforms like Airbnb, Galway seems to be more lax in policing its STR market. While national legislation planned for late 2024 aims to crack down on unregistered Airbnbs across Ireland, the current reality in Galway is that many hosts are not in compliance with local planning rules.

So in practice, Galway could currently be considered relatively "Airbnb-friendly" from a host perspective, in the sense that the STR rules on the books are often not enforced. However, the city and broader Irish government are facing pressure to tighten regulations and oversight of short-term rentals to combat housing shortages. Stricter enforcement may be on the horizon, but for now, it appears many Galway hosts continue to operate Airbnbs without the proper permissions.

How to Start a Short-Term Rental Business in Galway

Starting an Airbnb or short-term rental business in Galway requires careful planning and compliance with local regulations. Here are the key steps to get started:

• Research Galway's short-term rental rules: Familiarize yourself with Galway's specific regulations for short-term lets, especially if your property is in a Rent Pressure Zone (RPZ). Most will require planning permission from the Galway City Council. Understand the exemptions, such as renting a room in your primary residence or your entire home for less than 90 days per year while away.
• Develop a business plan: Treat your Airbnb as a business and create a detailed plan. Outline your target market, pricing strategy, financial projections, and marketing approach. Be realistic about income and expenses, including utilities, cleaning, insurance, and maintenance costs. This will serve as your roadmap for launching and growing your short-term rental.
• Prepare your property: Ensure your space is clean, well-maintained, and equipped with essential amenities. Take high-quality photos to showcase your rental on Airbnb and other platforms. Consider hiring a professional photographer to make your listing stand out. Develop a detailed property description highlighting unique features and nearby attractions.
• Obtain necessary permissions and licenses: Apply for planning permission from the Galway City Council if required for your short-term rental. This typically involves submitting an application, paying a fee, and allowing 8 weeks for a decision. If exempt, you'll still need to register with the council and file regular reports. Comply with fire safety regulations and consider obtaining additional liability insurance.
• Create your Airbnb listing: Sign up on Airbnb and create your property listing. Use an attractive title, detailed description, and eye-catching photos. Set competitive rates based on similar listings in your area. Clearly outline house rules and guest expectations. Enable instant booking to maximize occupancy.
• Automate and streamline operations: Use vacation rental software like Lodgify to manage bookings, communicate with guests, and coordinate turnovers. Establish clear check-in and check-out procedures, including key exchanges. Hire reliable cleaners and maintain a regular maintenance schedule. Have a system in place to quickly address any guest issues or emergencies.
• Market your rental: In addition to Airbnb, list your property on other vacation rental platforms like Vrbo and Booking.com to expand your reach. Leverage social media to promote your rental and engage with potential guests. Encourage satisfied guests to leave reviews, as positive ratings boost your visibility and credibility.
• Comply with tax obligations: Short-term rental income is subject to income tax, PRSI, and USC in Ireland. Familiarize yourself with tax requirements and keep accurate records of all income and expenses. File your annual tax return and pay any taxes due. Consider working with an accountant to ensure compliance.

Starting a short-term rental business in Galway requires diligent planning, compliance with regulations, and a commitment to providing exceptional guest experiences. By following these steps and staying attuned to local rules and market trends, you can build a successful and rewarding Airbnb business in this popular Irish destination.

Who to Contact in Galway about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or need to apply for planning permission in Galway, contact the Planning Department of the Galway City Council:

• Email: planning@galwaycity.ie
• Phone: 091-536599
• Address: Planning Department, Galway City Council, City Hall, College Road, Galway

The Planning Department handles all inquiries related to short-term letting rules, exemptions, and planning permission applications. They can provide guidance on the specific requirements for your property.

All required forms for short-term letting, such as the "Start of Year Notification" and "End of Year Notification" for properties exempt from planning permission, should be submitted to planning@galwaycity.ie or by post to the address above.

In addition to contacting the city directly, short-term rental hosts in Galway may find it helpful to connect with other local hosts and share experiences navigating the regulations. Here are a couple online communities to check out:

Airbnb Community Center - Galway Hosts

There are a few relevant discussions on the Airbnb Community forums related to hosting in Galway. While not a dedicated group, hosts ask and answer questions about local rules and challenges. Example threads:

• Anyone need help in Galway co hosting?
• Airbnb Host group Galway

Airbnb Hosts Galway - Facebook Group

There is a Facebook group called "Airbnb Hosts Galway" that aims to connect Galway hosts to share tips and support. This could be a useful resource for asking regulation questions and learning from more experienced hosts in the area.

By utilizing these official and community resources, short-term rental operators in Galway can ensure they understand and comply with all local planning and zoning requirements. The Galway City Council Planning Department should be the first point of contact for any questions or concerns.

What Do Airbnb Hosts in Galway on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in online forums like Reddit and Bigger Pockets, it appears that many Airbnb hosts in Galway are frustrated with the local short-term rental regulations and lack of enforcement. Here are a few relevant threads and comments:

On the Ireland subreddit, one user familiar with a particular Galway property stated:

"Been used as short term let's from the day they were built. The original planning never mentioned that. Of course there's no enforcement. According to Galway city council, only a hand full of properties applied for short term let permission when the regulations changed. A walk along any street in Galway shows the little key boxes on multiple properties. There's no will by the council to enforce the regulations."

Another Reddit user pointed out a specific planning application for short-term letting that was refused by the Galway City Council. However, the general sentiment is that many unauthorized short-term rentals continue to operate without the legally required permissions.

In a discussion on the Galway subreddit about landlords selling their rental properties, one commenter noted:

"Landlords fear a sinn fein government plus increased regulations having to give tenants a 12 month lease plus if they can't find anything having to pay them a few months rent to move out. A lot of landlords are getting out of the game and selling up or moving to short term lets on airbnb."

This suggests some Galway landlords are turning to Airbnb to avoid tenant protections and rent controls in the long-term rental market, despite the short-term letting rules.

While there are no Galway-specific threads on the Bigger Pockets forums, hosts in other cities with strict regulations have discussed strategies to navigate the rules, such as:

• Renting properties for 30+ days to avoid short-term rental permits
• Quickly booking a few one-night stays after a 30-day rental to keep the average under 7 days and qualify for tax loopholes
• Renting out properties on non-Airbnb platforms to avoid detection

However, these workarounds carry risks if caught violating the spirit of the law.

Overall, online discussions paint a picture of Galway as a challenging city for Airbnb hosts due to the strict on-paper rules coupled with a perceived lack of enforcement by the city council. This has led to frustration among rule-following hosts and the proliferation of illegal short-term rentals by those willing to flout the regulations.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.