Questions and Answers
What is the new Landlord Tax Relief announced in Budget 2024?
I own a small apartment that I rent out for €1500 a month. I had been thinking of selling, but I wonder after Budget 2024 is it worth my while staying in the market?
As part of Budget 2024 the Minister is introducing a new landlord tax relief for the years 2024 to 2027. For these years, tax relief at the standard rate of tax will apply to a certain amount of rental income.
In 2024 the relevant income to be relieved at the standard income tax rate is €3,000.
In 2025, it will be €4,000.
For both 2026 and 2027 it will be €5,000 in each year.
It is expected this relief will be worth between €600 and €1,000 each year during the lifetime of this scheme.
As the housing crisis continues the government is hoping to keep more small landlords in the market by introducing this relief.
Where this relief is claimed, please note that the property must be let for a period 4 years from the first year of claim, otherwise the relief will be clawed back.
Remember this relief commences from the year 2024. Most people will file their Income Tax Return for 2024 in Oct/Nov 2025 so it will take some time to feel the benefit of this measure.
Budget 2024 also includes an increase to the Rent Tax Credit from €500 to €750.
Find our full Budget 2024 Summary here
Frequently Asked Questions
Landlords need to register each of their tenancies with the Residential Tenancies Board (RTB) every year. This must be completed within one month of the anniversary when the tenancy began.
Yes, if you rent out a property you need to file a Tax Return each year and you will pay income tax on the difference between the rents you have charged in a tax year, less any allowable expenses and charges.
Yes, if you make money from renting with Airbnb you need to file a Tax Return. Also, where an Airbnb host generates income of €40,000 per annum they must register for and charge VAT at the appropriate rate and file the appropriate VAT Returns.
If you are an Irish resident, any rental income earned on an overseas property will also be subject to the Irish tax regime. You will be able to claim deductions to reduce your rental profit in the same manner as you would for your Irish property.
No, Local Property Tax (LPT) cannot be claimed as a deduction from your rental profit.
You need to make a Tax Return on your investment property regardless of whether it is profit or loss making. However, you should know that if you make a loss in one year this loss can be carried forward to reduce any future rental profits hence lowering your tax bill.
You may be able to reduce your taxable profit by claiming rental expenses incurred such as mortgage interest, repairs and maintenance, insurance and accountancy fees.
Capital allowances are an annual allowance for expenses incurred on capital items. An example of a capital item would be if you purchase a new boiler. Because this is considered a capital item for the property, the cost of this will be allowed over eight years.
From 2018 a new deduction of up to €5,000 per property for pre-letting expenses of a revenue nature are allowable subject to the property being vacant for a period of 12 months or more.
If you sell a property which is not your principal private residence you will be liable to capital gains tax (CGT) on any gain you make on the sale.
As part of Budget 2024 the Minister introduced a new landlord tax relief for the years 2024 to 2027. For these years, tax relief at the standard rate of tax will apply to a certain amount of rental income. Find out more
NLWT stands for Non-Resident Landlord Withholding Tax. The new NLWT system enables tenants or collection agents to make Rental Notifications (RN) when making payments to a non-resident landlord.
Date published 11 Oct 2023 | Last updated 21 Aug 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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