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Filing Deadline

Ireland Tax Deadline October 31st

Irish Property Tax Overview


The Irish tax system operates under a system of self-assessment.

This means that where an individual is in receipt of income which is not chargeable to tax under the PAYE system they must account for this income by submitting an Income Tax Return to Revenue and declare any tax thereon in respect of the year in which they received such income.

Self-Assessment applies for Income Tax purposes to the following individuals:

  • Self-employed persons (i.e. people carrying on their own business), and
  • Persons receiving income from sources such as (inter alia):
  • Profits from rents including foreign rental income,
  • Investment income,
  • Fees,
  • Profit arising on exercising various Share Options.

Irish Rental Income

Rental Income received in Ireland from an Irish investment property is taxed under Schedule D Case V.

As a property landlord you are liable to income tax on the aggregate of the rents received on all of your properties in Ireland.

The taxable income from each property is calculated by deducting the following from the gross rent receivable:

  • Advertising your property.
  • Accountancy fees for preparing rental income accounts.
  • Interest paid on any loan used to acquire or improve the property (restricted to 75% of interest paid since 7 April 2009).
  • Similarly, interest payable under hire purchase agreements or on an overdraft is deductible where the asset is used for business purposes.
  • Insurance of both the property and its contents.
  • Legal fees in respect of disputes with tenants are allowable.
  • Utility Bills such as, Gas, Electricity, Telephone.
  • Maintenance fees, such as gardening, cleaning etc.
  • If the property is let furnished an allowance is made for the cost of the furnishings over an 8 year period at 12.5% capital allowance.
  • Management company charges.
  • Agency fees paid.
  • Maintenance and repairs (but not improvements).
  • Rent, ground rent, service charges.
  • The cost of rent collection is generally deductible in computing rental business profits provided it relates wholly and exclusively to property let out on a commercial basis.

Repair means the restoration of an asset by replacing subsidiary parts of the whole asset. An example is the cost of replacing roof tiles blown off by a storm.

If a significant improvement of the asset beyond its original condition results - this will be classified as capital expenditure rather than a repair. For instance, there will be a capital improvement if the taxpayer takes off the roof and builds on another storey.

Examples of common repairs which are normally deductible in computing rental business profits include:

  • exterior and interior painting and decorating,
  • stone cleaning,
  • damp and rot treatment,
  • mending broken windows, doors, furniture and machines such as cookers or lifts,
  • re-pointing, and
  • replacing roof slates, flashing and gutters.

Generally expenses that are incurred wholly and exclusively for the purposes of the rental business; and are not of a "capital" nature, are allowable.

Note: Records should be kept of all expenditure incurred in connection with the letting.

Foreign Rental Income

Rental Income received from your foreign property is liable to income tax under Schedule D Case III. If you are Irish resident or ordinarily resident you are liable to Irish income tax on the income arising from your foreign rental property.

In most cases, you will have already paid tax on this income in the foreign jurisdiction. Therefore, depending on whether a double tax agreement exists between Ireland and the relevant country, you should be entitled to a tax credit in Ireland for any foreign tax paid on that income.

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