Tax Reliefs Every Irish Landlord Should Know in 2025

Being a landlord in Ireland in 2025 can be both profitable and challenging. While rental demand is strong, landlords face a complex tax environment - with rental income taxed at high marginal rates and growing compliance obligations with the Revenue Commissioners, RTB, and local authorities.

But here’s the good news: landlords have access to a wide range of tax reliefs and deductions that can reduce their tax bills significantly if used correctly.

In this definitive guide, we’ll break down:

• The key tax reliefs landlords can claim.
• Worked examples showing how much can be saved.
• The common mistakes landlords make (and how to avoid them).
• Advanced strategies to integrate reliefs with long-term wealth planning.
• How Irish Tax Hub helps landlords keep more of their rental profits.

🔑 Why Tax Reliefs Are Critical for Landlords in 2025

• Rental income is taxed heavily: up to 40% Income Tax + 4% PRSI + up to 8% USC = 52% effective tax rate.
• Revenue audits are increasing: landlords are under closer scrutiny due to data-sharing between Revenue, RTB, and banks.
• Tax reliefs = survival: correctly using deductions is the only way to keep rental yields profitable.

Many landlords overpay tax simply because they are unaware of all the reliefs available - or they fail to keep the proper records to claim them.

✅ The Key Tax Reliefs Landlords Should Claim

1. Mortgage Interest Relief (100% Deductible)

• You can claim 100% of the interest on loans used to purchase, repair, or improve rental properties.
• Strict condition: the property must be registered with the Residential Tenancies Board (RTB).
• Applies only to interest, not capital repayments.

💡 Tip: Many landlords lose thousands because they never completed RTB registration or failed to update tenancy details.

2. Repair, Maintenance & Improvement Costs

• Deductible: painting, decorating, plumbing, roof repairs, appliance replacements.
• Not deductible: capital improvements (extensions, new rooms, structural changes).
• Capital improvements may reduce future Capital Gains Tax when you sell instead.

3. Pre-Letting Expenses Relief (Up to €5,000)

• Applies where a property was vacant for at least 12 months before being rented.
• Deductible: refurbishment, insurance, service charges, repair works.
• Max €5,000 per property, claimed once.
• Encourages landlords to bring empty homes back into the rental market.

4. Local Property Tax (LPT)

• Fully deductible against rental income.
• Many landlords forget to claim this - it’s a simple but valuable deduction.

5. Insurance Premiums

• Landlord insurance (buildings, contents, public liability) is deductible.
• Always keep annual policy statements for Revenue purposes.

6. Management Fees & Letting Costs

Deductible expenses include:

• Property management fees
• Letting agent fees
• Advertising for tenants
• Legal fees for lease drafting or disputes

7. Capital Allowances on Furniture & Fixtures

• You can write off the cost of furnishing your rental over 8 years at 12.5% per year.
• Applies to items like beds, wardrobes, sofas, fridges, washing machines.

8. Wear & Tear Allowance

• Relief for depreciation of furniture and equipment provided in a rental property.
• Helps landlords offset the ongoing cost of keeping accommodation up to standard.

9. Travel & Related Expenses

• Mileage, tolls, and travel expenses for visiting properties, carrying out inspections, or arranging repairs may be deductible.
• Must be reasonable, genuine, and supported by records.

10. Capital Gains Tax (CGT) Reliefs for Landlords

When selling a rental property, CGT applies at 33% on the gain. Reliefs include:

• Principal Private Residence (PPR) Relief: if you lived there previously.
• Entrepreneur Relief: 10% CGT rate on qualifying disposals, lifetime cap €1m.
• Retirement Relief: for landlords aged 55+, generous exemptions up to €750k/€1m depending on circumstances.

📊 Worked Example: How Reliefs Save Landlords Thousands

Scenario:

• Rental income: €24,000 per year
• Mortgage interest: €10,000
• Repairs & maintenance: €2,000
• LPT: €500
• Insurance: €500
• Management fees: €1,000
• Furniture capital allowances: €1,500

Net taxable rental income = €8,500

If reliefs weren’t claimed, the landlord would pay tax on the full €24,000. Correctly claiming deductions saves tax on €15,500 — at a 52% tax rate, that’s a saving of €8,060 per year.

Over 10 years, that’s €80,600 saved just by applying reliefs.

⚠️ Common Mistakes by Irish Landlords

1. Not registering with RTB → lose full mortgage interest deduction.
2. Treating capital improvements as repairs → Revenue can claw back relief.
3. Forgetting small items like insurance, LPT, or travel expenses.
4. Poor record-keeping → Revenue can disallow deductions if not backed up.
5. DIY tax returns → missing out on reliefs or incorrectly applying them.

📈 Advanced Tax Planning for Landlords

• Incorporation Strategy: Some landlords may benefit from moving properties into a company structure - lower Corporation Tax vs personal Income Tax. Needs careful planning to avoid stamp duty/CGT traps.
• Succession Planning: Use reliefs like the Small Gift Exemption (€3,000/year), Business Relief, and Favourite Niece/Nephew Relief to pass properties tax-efficiently.
• Portfolio Planning: Certain reliefs (e.g., pre-letting €5,000) apply per property, so landlords with multiple rentals can multiply benefits.
• Exit Planning: Landlords over 55 should explore Retirement Relief for future disposals.

💡 Why Work With Irish Tax Hub

At Irish Tax Hub, we specialise in helping landlords reduce tax and stay compliant. We:

• Claim all available reliefs to maximise your after-tax rental income.
• Provide a Revenue-compliant tax return service tailored for landlords.
• Audit-proof your records so you’re protected if Revenue comes knocking.

⚡ Don’t overpay tax on your rental properties.
Contact Irish Tax Hub today and let us show you exactly how much tax you could be saving.