Ireland’s short-term rental market, dominated by platforms like Airbnb, is bracing for significant changes as new regulations are planned to take effect in 2025 or 2026. These laws aim to address the country’s housing crisis by prioritising long-term rentals while balancing the needs of the tourism industry. With an estimated 32,000 short-term lets advertised online, including up to 10,000 properties that could be redirected to long-term housing, the Irish government is under pressure to act. Here’s a detailed look at the planned changes, their potential impact, and what they mean for Airbnb hosts and travellers.

Background: Why New Laws Are Needed

Ireland has faced a persistent housing crisis, particularly in urban areas like Dublin, where rent pressure zones (RPZs) highlight acute shortages of long-term rental properties. Short-term rentals, while lucrative for hosts and vital for tourism, have been criticised for reducing housing stock. In 2019, regulations were introduced requiring hosts in RPZs to limit short-term letting of entire homes to 90 days per year unless they secure planning permission. However, enforcement has been inconsistent, prompting the government to propose stricter measures.

The new laws, primarily through the Short-Term Letting and Tourism Bill 2025, aim to:

- Increase long-term housing availability by limiting short-term rentals in high-demand areas.

- Ensure compliance through a mandatory registration system managed by Fáilte Ireland, the national tourism authority.

- Align Ireland’s regulations with forthcoming EU-wide rules on short-term rentals.

Key Planned Changes

Based on recent reports and government statements, the following changes are expected:

1. Mandatory Registration with Fáilte Ireland

All properties used for short-term lets (defined as stays of 21 nights or less) will need to register annually with Fáilte Ireland. Hosts will receive a unique registration number linked to the property’s Eircode, which must be displayed in online listings. Platforms like Airbnb and Booking.com will be prohibited from advertising unregistered properties, with Fáilte Ireland monitoring compliance. Registration fees are expected to range between €300 and €500 annually.

2. Stricter Limits in Populated Areas

In towns and cities with populations over 10,000, short-term letting of entire homes may be heavily restricted or effectively banned unless hosts secure specific planning permission. This targets urban areas where housing demand is highest, such as Dublin, Cork, and Galway. Homeowners will still be allowed to rent out their primary residence for up to 90 days per year without needing permission, but second homes or investment properties face tighter scrutiny.

3. Significant Fines for Non-Compliance

The proposed legislation introduces hefty penalties to enforce compliance:

   - Hosts advertising unregistered properties could face fines of €300 to €5,000 per violation.

   - Online platforms like Airbnb could be fined up to 2% of their annual global revenue for listing non-compliant properties. For Airbnb, with reported 2024 revenues of €4.8 billion, this could mean penalties as high as €96 million per breach.

   These fines mark a shift from earlier proposals, which capped platform penalties at €5,000 per listing, signalling a tougher stance on enforcement.

4. Planning Permission Challenges  

   In areas with populations over 10,000, obtaining planning permission for short-term letting is expected to be difficult, as local authorities prioritise long-term housing. This could effectively prevent hosts from operating full-time short-term rentals in cities, pushing properties back into the long-term market.

5. Delayed Implementation 

   While earlier plans aimed for a 2022 or 2024 rollout, the registration system is now expected to launch in summer 2026. Delays stem from the need to align with EU regulations and address concerns from the tourism sector. The European Commission has intervened to ensure Ireland’s rules are proportionate, adding complexity to the legislative process.

Potential Impacts

The planned laws have sparked debate, with implications for hosts, travellers, and the broader economy:

- For Hosts:  

   Hosts in urban areas, particularly those renting out second homes, may find it unfeasible to continue operating due to planning restrictions and registration costs. However, those renting rooms in their primary residence or operating in rural areas with populations under 10,000 may face fewer hurdles. The registration system could streamline compliance but adds administrative and financial burdens. Hosts are advised to consult tax professionals, as short-term rental income is taxable and subject to income tax, rental tax, or VAT, with returns due by October 31 annually.

- For Travellers:  

   The supply of Airbnb listings in cities like Dublin could shrink, potentially driving up prices for available rentals. Tourists may need to rely more on hotels or seek accommodations in rural areas, where regulations are less stringent. This could reshape travel patterns, boosting tourism in smaller towns but limiting options in urban hubs.

- For the Housing Market:  

   The government hopes to free up to 12,000 properties for long-term rentals, easing pressure in RPZs. However, only a fraction of the 32,000 short-term lets may be suitable for long-term use, and the transition could take time. Critics argue that the impact on housing availability may be overstated.

- For Tourism:  

   Tourism hotspots like Killarney and Tramore, with populations over 10,000, could see reduced short-term rental options, prompting concerns from local politicians. Kerry TDs, including Minister Norma Foley and Michael Healy-Rae, have objected, citing potential harm to tourism-driven economies. Rural areas, exempt from the strictest rules, may benefit from increased visitor demand.

Opposition and Support

The proposed laws have divided stakeholders:

- Support:

Housing advocates and some government officials, including former Housing Minister Darragh O’Brien, back the measures, arguing they will alleviate the housing crisis. Airbnb has expressed support for a host register, provided rules are “fair and proportionate,” and has pledged to assist with compliance.

- Opposition:

Tourism organisations, such as the Irish Self-Catering Federation, warn that the laws could devastate rural and coastal tourism, putting small accommodation providers out of business. Politicians from tourism-heavy regions like Kerry argue that the 10,000-population threshold unfairly targets popular destinations. The European Commission has also pushed for less restrictive rules to align with EU standards.

Preparing for the Changes

For hosts, preparation is key:

- Register Early: Once the Fáilte Ireland system launches, register promptly to avoid penalties. Ensure you have proof of property ownership or landlord permission.

- Check Planning Requirements: In RPZs or areas with populations over 10,000, verify whether you need planning permission. Contact your local authority for guidance.

- Understand Tax Obligations: Consult a tax professional to navigate income tax, VAT, and potential reliefs, such as the €14,000 rent-a-room relief for primary residences (subject to conditions).

- Enhance Safety: Comply with fire and gas safety regulations, provide clear escape routes, and maintain first aid kits, as mandated for short-term rentals.

Travellers should monitor listing availability in urban areas and consider booking early, especially for peak seasons, as supply may tighten.

Conclusion

Ireland’s planned Airbnb laws reflect a delicate balancing act between addressing the housing crisis and preserving a vibrant tourism sector. While the registration system and urban restrictions could unlock thousands of homes for long-term rentals, they risk disrupting the short-term rental market and tourism economies in key regions. As the Short-Term Letting and Tourism Bill 2025 progresses, hosts and travellers alike should stay informed and prepare for a transformed landscape. For the latest updates, check Fáilte Ireland’s resources or the Department of Housing’s FAQs.

*Note: As these laws are still in development, details may change. Always verify with official sources before making decisions.*

**Sources**:  

- Keynest.com, December 2024

- Irish Examiner, April 2025

- The Irish Times, February and April 2025

- The Journal, March 2025

- Citizensinformation.ie, November 2022