Pre-Letting Expenses in Ireland: What Can Landlords Claim Back?

Many landlords in Ireland are sitting on vacant properties. Sometimes a rental has been left empty due to tenant turnover, disrepair, or family circumstances. Before the property can be rented again, it often needs work - and those costs can add up quickly.

Historically, landlords could not claim a tax deduction for expenses incurred before letting a property. That meant repairs, insurance, and charges during vacancy were effectively lost.

But in recent years, the government introduced Pre-Letting Expenses Relief to encourage landlords to bring more vacant properties back onto the rental market. This relief can be worth up to €10,000 per property, making it a valuable tool for landlords in 2025.

In this guide, we’ll cover:

• ✅ What Pre-Letting Expenses Relief is and how it works.
• ✅ The qualifying conditions under Revenue rules.
• ✅ What expenses are deductible (and which are not).
• ✅ Worked examples of tax savings.
• ✅ Clawback rules landlords must be aware of.
• ✅ Strategic planning tips to maximise the relief.
• ✅ How Irish Tax Hub helps landlords claim every euro available.

🔑 What is Pre-Letting Expenses Relief?

Pre-Letting Expenses Relief allows landlords to deduct certain expenses incurred on a residential property that has been vacant for at least 6 months before being rented out.

• The deduction is capped at €10,000 per property.
• It applies to expenses incurred in making the property suitable for letting.
• The property must remain in the rental market for at least 4 years after the claim.
• Relief is given in the year the property is first let.

This measure was introduced to combat housing shortages by encouraging owners to bring vacant homes back into use.

✅ What Expenses Qualify?

Landlords can claim a range of necessary expenses that directly relate to preparing a vacant property for rental, such as:

Repairs and maintenance

• Painting and decorating
• Plumbing, heating, or electrical work
• Roof repairs
• Carpentry and flooring fixes

Insurance premiums

• Home or landlord insurance paid during the vacancy period.

Service charges

• Management company fees
• Utility standing charges
• Local authority charges

Safety compliance costs

• Fire alarms and smoke detectors
• Gas and electrical safety checks
• Security upgrades

💡 Key point: These must be expenses directly linked to restoring the property for letting.

🚫 What Expenses Do Not Qualify?

Revenue is strict on exclusions. Landlords cannot claim:

Capital improvements

• Extensions, new kitchens, or adding rooms.
• These are not deductible but may be added to the base cost for Capital Gains Tax (CGT) on sale.

Furniture & fixtures

• Beds, sofas, and appliances do not qualify here.
• They may instead qualify for capital allowances (12.5% per year for 8 years) after the property is let.

Mortgage interest

• Only deductible after the property is registered with the RTB and let.

📊 Worked Example 1: Standard Case

• Property vacant: 14 months

Pre-letting costs:

• Repairs: €8,200
• Insurance: €800
• Service charges: €1,200
• Safety compliance: €1,000
• Total = €11,200

Relief available: capped at €10,000.

If rental income in year one = €18,000 → taxable rental income reduces to €8,000.

At a 52% marginal tax rate, that’s a tax saving of €5,200.

📊 Worked Example 2: Higher Expenses

• Property vacant: 24 months
• Pre-letting refurbishment costs: €20,000

Relief available: capped at €10,000, regardless of actual spend.

While not all expenses are deductible, €10,000 still reduces taxable rental income, saving up to €5,200 in tax in the first year.

⚠️ Conditions and Clawbacks

Revenue imposes strict conditions:

1. Property must be vacant for at least 12 months before letting.
2. The property must remain let for at least 4 years.
3. If sold or withdrawn earlier, relief may be clawed back.
4. Landlords must keep receipts, invoices, and tenancy details.
5. Revenue can request proof during an audit.

📈 Strategic Uses of Pre-Letting Relief

• Portfolio Planning: Landlords with multiple vacant properties can claim up to €10,000 per property.
• Combine Reliefs: After letting, claim additional deductions - mortgage interest, LPT, management fees, and capital allowances.
• Timing is Key: Ensure vacancy is documented (e.g., utility bills, RTB records) to meet Revenue’s 12-month rule.

⚠️ Common Mistakes by Landlords

• Claiming for capital improvements (extensions, new kitchens) instead of repairs.
• Failing to meet the 12-month vacancy requirement.
• Forgetting the 4-year retention rule, triggering clawbacks.
• Poor documentation - Revenue may disallow relief without proper invoices.

💡 Why Work With Irish Tax Hub

At Irish Tax Hub, we make sure landlords don’t miss out on valuable tax reliefs like Pre-Letting Expenses. We:

• Analyse your expenses to separate qualifying repairs from non-qualifying improvements.
• Prepare your rental income returns to include all deductions.
• Document everything for Revenue compliance.
• Plan ahead to combine Pre-Letting Relief with other landlord reliefs for maximum benefit.
• Model long-term savings so you can see the impact on your portfolio.

⚡ Don’t let Revenue rules trip you up — contact Irish Tax Hub today and let us help you claim Pre-Letting Relief correctly and keep more of your rental income.