Rental income tax in Ireland: what you can deduct and which return to file

Allowable expenses

• Mortgage interest, where the tenancy is registered with the RTB.
• Insurance, management and letting agent fees, accountancy fees for the rental accounts.
• Repairs and maintenance (not improvements), cleaning and painting between lets.
• Local authority rates and service charges you pay as landlord.
• Capital allowances: 12.5% of the cost of furniture, white goods and fittings each year for eight years.
• Legal and advertising costs of letting after the first letting.

Not allowable

• Local Property Tax.
• Capital improvements, such as an extension, which go against Capital Gains Tax later.
• Costs before the first letting, other than legal and advertising fees.
• Your own time doing repairs.

Which return

Net profit of 5,000 euro or less and gross rent of 30,000 euro or less: declare it in the PAYE Income Tax Return and Revenue collects the tax by reducing your credits. Above either limit you are a chargeable person: register for Income Tax and file Form 11 on ROS by 31 October, paying preliminary tax.

Losses

A rental loss can be carried forward against future Irish rental profits only, not against your salary. Losses on a property let below market rent to a relative are ring-fenced to that property.