Landlords
Landlord Tax in Ireland: Rental Income and Revenue
TL;DR
Irish landlords pay income tax, USC, and PRSI on rental profit, which is rent received less allowable expenses, including 100% of mortgage interest on residential lettings. You declare it on a Form 11 by 31 October and must register tenancies with the RTB to claim interest.
How is rental income taxed in Ireland?
Rental profit is added to your other income and taxed at your marginal rate, 20% or 40%, plus USC and PRSI. Profit is the rent you receive less the expenses Revenue allows, not the gross rent.
Because it is taxed at your marginal rate, two landlords with the same rent can pay very different tax depending on their other income. Planning matters.
What expenses can a landlord deduct?
Allowable expenses reduce your taxable rental profit. The main ones are:
- Mortgage interest on the rented property (100% for residential lettings)
- Insurance, management fees, and letting agent costs
- Repairs, maintenance, and general upkeep
- Accountancy fees and certain pre-letting expenses
- Capital allowances on furnishings, written off over eight years
Mortgage interest and the RTB
You can deduct 100% of the interest on a loan used to purchase, improve, or repair a residential rental property, but only if the tenancy is registered with the Residential Tenancies Board (RTB). Skip the registration and you lose the relief.
The Rent Tax Credit
Separately, tenants paying for private rented accommodation can claim the Rent Tax Credit, which has been a valuable credit in recent years. If you rent your home, it is worth checking you are claiming it on your return.
Filing and deadlines
Rental income is reported on the self-assessment Form 11 (or Form 12 if it is small and you are otherwise PAYE), due by 31 October, or mid-November on ROS. Keep records of rent and every expense for six years.
Non-resident landlords
If you live abroad and rent out an Irish property, special rules apply to how tax is collected, often through your tenant or a collection agent. We handle a number of non-resident landlords and manage this for them.
Would you rather we just handled it?
Our income tax return service, on a fixed fee.
Landlords
Frequently asked questions
How much tax do landlords pay in Ireland?
Rental profit is taxed at your marginal income tax rate of 20% or 40%, plus USC and PRSI. Profit is rent received less allowable expenses, so what you actually pay depends on your costs and your other income.
Can landlords deduct mortgage interest?
Yes. You can deduct 100% of the interest on a loan used to buy, improve, or repair a residential rental property, provided the tenancy is registered with the RTB. Without RTB registration, the relief is lost.
What expenses can a landlord claim against rental income?
Mortgage interest, insurance, management and letting fees, repairs and maintenance, accountancy fees, and capital allowances on furniture written off over eight years. Personal or capital improvement costs are treated differently.
Do I have to register with the RTB?
Yes, residential tenancies must be registered with the Residential Tenancies Board, and registration is a condition of claiming mortgage interest relief. It also protects both landlord and tenant under the residential tenancies framework.
When is rental income tax due?
Rental income is declared on your annual return by 31 October, or mid-November if you file and pay on ROS. Preliminary tax for the following year is due at the same time. Confirm dates on revenue.ie.