Tax Filing Made Easy for Small Landlords

• Long-Term Letting: Rental income is taxed under Schedule D Case V. You must declare the rental income on your annual tax return and can deduct allowable expenses, including mortgage interest (up to 75%, subject to conditions), repairs, property management fees, insurance, and other costs directly related to the property.
• Rent-a-Room Relief: If renting out a room in your primary residence, you can earn up to €14,000 tax-free. This only applies if the property is your primary residence, and the rental is long-term. It does not apply to short-term lets like Airbnb.
• Short-Term Letting (e.g., Airbnb): Income from short-term lets is treated as trading income, not rental income. This must be declared on your tax return and taxed accordingly. If your income exceeds €42,500, you must register for VAT and charge VAT on the accommodation provided.
• Filing Your Tax Return: If you’re a PAYE taxpayer with rental income, file Form 12. For self-employed individuals or those with multiple sources of income, file Form 11.

As a non-resident landlord, your tax obligations change, but you remain liable for Irish income tax on rental income from properties in Ireland. You must file Form 11 annually, claim allowable expenses like mortgage interest, repairs, and insurance, and choose one of the following options for handling tax payments:

• Option 1: Appoint a collection agent in Ireland to manage your rental income, deduct 20% tax, and file a return on your behalf.
• Option 2: If you don’t appoint a collection agent, your tenant is required to withhold 20% of the rent and remit it directly to Revenue.

You may also be eligible for Double Taxation Relief if the country you move to has a tax treaty with Ireland, potentially reducing the amount of Irish tax you owe.

Tax on rental income is calculated as follows:

• Rental Income: The total income you receive from your tenants during the tax year.
• Allowable Expenses: These must be incurred wholly and exclusively for the purpose of renting out the property. Examples include:
  • Mortgage interest  (only on loans used to purchase, improve, or repair the property, and subject to conditions).
  • Repairs and maintenance  (e.g., fixing a broken boiler, repainting).
  • Property management fees  (e.g., fees paid to a letting agent).
  • Insurance premiums  (e.g., landlord insurance).
  • Advertising costs  (e.g., for finding tenants).
  • Accountancy fees  (for preparing rental accounts or tax returns).
  • Utilities and services  (if you pay for them, such as electricity, gas, or waste collection).
  • RTB registration fees  (if applicable).
  • Other costs  directly related to the rental property.

Note: Capital expenses (e.g., buying the property or making improvements that increase its value) are not deductible. However, you may be able to claim capital allowances for certain items like furniture or fittings.

• Taxable Profit: Your rental profit is the rental income minus allowable expenses. This profit is taxed as part of your total income.
• Tax Rates: For 2025, the standard rate is 20% on income up to €44,000 (single), €48,000 (one-parent family), or €53,000 (married couple), with 40% on income above these thresholds. You can reduce your tax liability by claiming your tax credits.
• USC & PRSI: Rental income is subject to USC (0.5%-8% depending on total income) and PRSI (4% for self-employed individuals).

Rent-a-Room Relief allows individuals to rent out a room or a flat in their primary residence and earn up to €14,000 per year tax-free, provided the following conditions are met:

1. Property Requirements:
   • The rented room(s) must be in your primary residence (the home you live in).
   • The rental must be long-term, meaning you’re renting to a tenant for a sustained period (e.g., a student or professional), not for short-term lets like Airbnb.
2. Income Limit:
   • The total gross rental income from all rooms must not exceed €14,000 in a tax year.
   • If your income exceeds €14,000, the entire amount becomes taxable, not just the excess.
3. Exclusions:
   • Rent-a-Room Relief does not apply to short-term rentals (such as those listed on Airbnb or for holiday purposes).
   • You cannot claim relief if you are renting to family members (e.g., children, spouse) without a formal lease agreement.
4. Claiming Rent-a-Room Relief:
   • If you meet the conditions, you do not need to declare the rental income on your tax return, unless you are already required to file a return for other reasons (such as additional income or self-employment).
   • If you choose to declare the income, you can report it in the Exempt Income section of your tax return.

Important Notes:

• Even if the income is exempt under Rent-a-Room Relief, the room must still meet health and safety standards, and you must comply with local rental laws.
• Rent-a-Room Relief applies per property—if you jointly own the property, the €14,000 limit applies to the combined rental income.

Yes, if your rental income exceeds €5,000, you must file Form 11 under the self-assessment system. File by 31 October or mid-November for online filings via ROS.

Yes, you can claim ongoing expenses like:

• Property Management Fees
• Insurance
• Repairs and Maintenance if the property is actively marketed for rent.

However, pre-first letting expenses can only be claimed if the property has been vacant for at least 6 months, and the maximum deductible amount is €10,000. Expenses related to personal use or properties held for sale are not deductible.