Ireland offers a range of tax reliefs and allowances to support buy-to-let investors and landlords. While not quite as generous as in the past, these measures help improve net rental yields and cash flow. Professional advice is key to maximising benefits.
Tax Relief on Mortgage Interest
Ireland allows landlords to deduct mortgage interest payments as a business expense against rental income. Known as Section 23 Relief, this can be claimed over a 7-year period. Relief is capped based on property type:
- Houses/Apartments: Deduct up to 75% of interest
- Commercial Units: Deduct 100% of interest
Accelerated Capital Allowances
Under Accelerated Capital Allowances (ACAs), investors can deduct certain capital expenditures against tax sooner rather than slowly claiming over asset lifetimes. Qualifying ACA expenditures include fire safety systems, wheelchair access ramps, solar panels, and more.
No Capital Gains Tax on Certain Sales
For properties bought between 2011-2021, no capital gains tax applies when holding periods exceed 5 years (non-residential) or 7 years (residential). This promotes longer-term investment in rental property.
Local Property Tax and Stamp Duty Discounts
Investors benefit from preferential stamp duty (6% vs 10% residential) and lower Local Property Tax rates on rental dwellings versus private homes, although this gap has narrowed recently.
Loss Relief Against Other Income
Historically landlords could deduct unused rental expenses/interest against other income. But loss relief rules have tightened significantly, now requiring profits before offsetting other income. Still, losses accrue to offset future profits.
Knowledge is Key
To benefit from available landlord incentives keeping up with legislative changes is crucial. KPM Group provides hands-on guidance to maximise relief. Contact us today to explore optimising allowances on Irish rental investments.
Property Management in Ireland
For over 25 years, KPM Group has provided specialist property management services to landlords across Ireland. Our extensive property expertise enables clients to maximise returns and tax efficiency.
KPM’s hands-on rental property management covers everything from market appraisals, tenant finding and rent collection to maintenance coordination and licence renewals. We stay on top of changing regulations and incentives, providing expert guidance to optimise benefits and improve net yields.
Whether you’re considering expanding your portfolio or purchasing your first investment property, KPM Group has the local market knowledge to help you capitalise on Ireland’s landlord tax reliefs.
Contact our property management team today to explore how we can help build and manage your rental property business for optimal returns. With deep expertise across Dublin and regional markets, we have the experience to guide your next steps.
