Income Tax on Rental Income for Irish Resident Landlords (2025) - A Comprehensive Guide

As a landlord in Ireland, understanding your tax obligations is crucial to ensure compliance with Revenue regulations and to maximise the tax reliefs and allowances available to you.

This blog provides a detailed overview of how rental income is taxed, the allowable deductions, tax credits, and reliefs specific to 2025, as well as the legal obligations landlords must adhere to.  

How is Rental Income Calculated?

Rental income is calculated as the gross rental income received from letting a property, less any allowable expenses incurred in earning that income. The resulting figure is your net rental income, which is subject to income tax, PRSI, and USC.  

Tax Rates for 2025

• The first €44,000 (single person), €48,000 (one-parent family), or €53,000 (married couple) of income is taxed at the standard rate of 20%.  
  

• Income above these thresholds is taxed at the higher rate of 40%.  

• USC (at varying rates and thresholds) and PRSI (4.1%) will also be charged on net rental income.

Allowable Deductions for Rental Income

To calculate your taxable rental profit, you can deduct certain expenses incurred in letting the property. These include:  

Allowable Expenses

• Mortgage Interest: Interest on loans used to purchase, improve, or repair the property (100% of the interest is deductible for residential properties, provided the tenancy is registered with the RTB).  
  

• Repairs and Maintenance: Costs of repairing or maintaining the property (e.g., fixing a roof, plumbing repairs).  
  

• Insurance: Premiums for landlord insurance policies.  
  

• Property Management Fees: Fees paid to letting agents or property managers.  
  

• Utilities and Services: Costs such as electricity, gas, and refuse collection, if paid by the landlord.  
  

• Legal and Professional Fees: Costs for legal advice, accountancy fees (a portion is allowed for rental accounts preparation, but not for filing of the Form11) , or preparing leases.  
  

• Advertising Costs: Expenses incurred in advertising the property for rent.  
  

• RTB Registration Fees: Fees paid to register the tenancy with the Residential Tenancies Board (RTB). 

Non-Allowable Expenses

Certain expenses cannot be deducted, including:  

• Capital costs (e.g., the cost of purchasing the property or making structural improvements).  
  

• Personal expenses not related to the rental property.  
  

• Costs incurred before the property was first let.
  

Capital Allowances

Landlords can claim capital allowances for certain capital expenditures, such as:  

• Furniture and Fittings: Depreciation on items like beds, sofas, and kitchen appliances.  
  

• Fixtures: Items such as boilers or built-in wardrobes. 

  Capital allowances are typically claimed at a rate of 12.5% per year over 8 years.

Tax Credits and Reliefs for 2025

Residential Premises Rental Income Relief (RPRIR)

Introduced in 2024, this relief is available to private landlords who keep their property in the rental market for at least 4 years. For 2025, the relief allows you to claim 20% of €3,000, reducing your tax liability by up to €600. This relief will increase in future years, however will be clawed back by Revenue if the property is sold within 4 years of the year in which the relief was first claimed.

Rent-a-Room Relief

If you rent out a room in your primary residence, you may qualify for Rent-a-Room Relief and pay no tax on the income, provided the rental income does not exceed €14,000 per year.  

Legal Obligations for Landlords

As a landlord, you must comply with the following legal requirements: 

Local Property Tax (LPT)

LPT must be paid annually on all residential properties. Ensure your LPT payments are up to date.  

Residential Tenancies Board (RTB)

All tenancies must be registered with the RTB. Failure to register can result in penalties and the loss of certain tax reliefs. 

Tax Registration

You must register with Revenue as a landlord and file an annual Form 11 to declare your rental income.  

Pay and File Deadline

The pay and file deadline for the Form 11 is 31 October 2025. If you file and pay through Revenue Online Service (ROS), you may benefit from an extended deadline (mid-November).  

Other Relevant Information

• PRSI and USC:  Rental income is subject to PRSI (4.1%) and USC (rates vary depending on income).  
  

• Record-Keeping: Maintain detailed records of all rental income and expenses for at least 6 years.  
  

• Capital Gains Tax (CGT): If you sell the property, any gain is subject to CGT at a rate of 33%, with reliefs available for certain expenses.  

Conclusion

Understanding the tax implications of rental income is essential for Irish resident landlords. By keeping accurate records, claiming all allowable deductions, and complying with legal obligations, you can ensure that you meet your tax responsibilities while maximising your tax efficiency.  

If you have any questions or need assistance with your rental income tax obligations, feel free to contact us. We’re here to help!  

Disclaimer:  This blog is for informational purposes only and does not constitute tax advice. For personalised advice, book a consultation with CloudAccounts using the link on our website.

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Alan is a Chartered Accountant and Tax Adviser and the founder of CloudAccounts, a remote practice that provides support for business owners, PAYE workers and anyone who requires professional assistance with their tax and accounting matters.

Alan also offers consultations and corporate seminars, to offer businesses and their employees' simple practical advice in easy-to-understand presentations, allowing employees to feel valued, supported and make the most of the company benefits. If you require further information please contact CloudAccounts today.

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