Landlord Compliance in 2025

Being a landlord in Ireland in 2025 comes with significant responsibilities. It’s no longer just about collecting rent - landlords face an increasingly complex set of compliance obligations, spanning the Residential Tenancies Board (RTB), Local Property Tax (LPT), and the Revenue Commissioners.

Failure to comply can result in financial penalties, loss of valuable tax reliefs, and even Revenue audits. In this guide, we’ll walk through everything Irish landlords need to know about staying compliant in 2025, and explain how Irish Tax Hub can help you meet your obligations while maximising your tax savings.

🔑 Why Compliance Matters More in 2025

• Revenue audits on the rise: Revenue now shares data with the RTB and banks, meaning undeclared rental income is easier than ever to detect.
• Penalties are tougher: Non-compliance with RTB or LPT obligations can result in fines, interest charges, and disqualification from mortgage interest relief.
• Reliefs depend on compliance: Key landlord reliefs (like 100% mortgage interest deduction) are only available if your property is fully compliant with the RTB.

In short - compliance isn’t optional, it’s essential.

🏠 RTB (Residential Tenancies Board) Obligations

Every landlord in Ireland must comply with RTB requirements, which include:

1. Registering Tenancies

• All new and existing tenancies must be registered with the RTB.
• Annual registration fee applies (currently €40 for private tenancies).
• Failing to register means you lose entitlement to mortgage interest tax relief and you risk fines and penalties from the RTB.

2. Maintaining Proper Records

• Lease agreements, tenant details, rent records, and maintenance logs must be retained.
• These records are essential if disputes arise.

3. Compliance with Rent Pressure Zones (RPZs)

• In RPZs, rent increases are capped by formula.
• Landlords must issue rent review notices correctly and retain documentation.

4. Dispute Resolution

• The RTB acts as mediator in landlord-tenant disputes.
• Failure to follow RTB processes can result in legal and financial consequences.

🏘️ LPT (Local Property Tax) Obligations

Landlords must pay Local Property Tax (LPT) annually on rental properties.

1. Annual LPT Return & Payment

• LPT is based on the market value of the property.
• Returns must be filed and paid through Revenue’s MyAccount or ROS.

2. Deductibility for Landlords

• The good news: LPT is a deductible expense against rental income.
• Many landlords forget to claim this - effectively leaving money on the table.

3. Penalties for Non-Payment

• Unpaid LPT leads to surcharges on income tax returns, interest, and enforcement actions.
• Non-compliance is visible to Revenue, affecting your overall tax compliance record.

💰 Revenue Obligations

Your obligations to the Revenue Commissioners as a landlord include:

1. Declare All Rental Income

• Rental income must be reported annually on your Income Tax Return (Form 11).
• Includes income from residential, commercial, foreign, and short-term (Airbnb) lets.
• Revenue cross-checks with RTB, banks, and airbnb - undeclared income is easily caught.

2. Claim Allowable Deductions

Landlords can deduct a wide range of expenses, including:

• Mortgage interest (if RTB registered).
• Repairs & maintenance.
• Insurance premiums.
• LPT.
• Management fees and letting costs.
• Capital allowances on furniture and appliances.

Correctly claiming these deductions is the difference between paying tax on your gross rental income versus your net profit.

3. USC and PRSI on Rental Income

• Rental income is subject not only to income tax (20% or 40%), but also to USC (up to 8%) and PRSI (4%).
• This can push your effective tax rate on rental income above 50% if not planned properly.

4. CGT (Capital Gains Tax) on Disposal

• If you sell a rental property, any gain is taxed at 33%.
• Reliefs may apply (PPR, Entrepreneur Relief, Retirement Relief).

📊 Example: Landlord Compliance in Practice

• Landlord with 2 properties in Dublin.
• Registers both tenancies annually with the RTB.
• Pays LPT on each and deducts it against rental income.
• Declares €36,000 in rental income.
• Deductible expenses: €15,000 (mortgage interest, repairs, insurance, LPT, management fees).
• Net taxable rental income = €21,000.

By staying compliant, the landlord not only avoids penalties but also saves thousands by claiming every deduction available.

⚠️ Risks of Non-Compliance

• RTB penalties: Failure to register can result in fines of up to €4,000 and court prosecution.
• Loss of reliefs: Mortgage interest deduction denied if RTB obligations not met.
• Revenue surcharges: Non-payment of LPT adds surcharges to income tax returns.
• Revenue audit: Non-declaration of rental income can result in penalties up to 100% of the underpaid tax, plus interest.

💡 How Irish Tax Hub Helps Landlords

At Irish Tax Hub, we specialise in keeping landlords compliant and tax-efficient. We:

• Prepare and file Revenue returns with all allowable deductions.
• Advise on CGT and succession planning for landlords with multiple properties.
• Provide audit-proof records so you’re always covered with Revenue.

⚡ Don’t risk penalties or overpaying tax - contact Irish Tax Hub today to keep your rental business compliant and profitable in 2025.