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Irish Landlord Expenses: The Absolute Basics of What You Can and Can’t Claim

#TaxTipsIreland

Tips for Irish Landlords

Read the blog below for tips on what you can claim or download our free guide to landlord tax in Ireland here.

If you’re new to the rental game in Ireland, you might have done some preliminary research into what sort of expenses you can claim on when renting property for residential purposes, but be a bit stumped or at least unsure as to what exactly what it all means. 

That's why we've compiled this overview of the absolute basics with regard to expenses and relief for Irish landlords. You can find a more comprehensive guide to many of the expenses detailed here throughout our various updates, but if you're a newbie and just want the low-down on rentals and tax you've come to the right place.

 

What sort of tax will I pay?

Generally speaking, you'll pay either 20% or 40% tax on your net rental income, depending on your personal circumstances (marital status, how much you're charging tenants, whether you have other forms of income, etc). Unless you're renting in your own home and earning below a certain amount, you'll have to register with the Private Residential Tenancies Board and lodge a Landlord's tax return every year by 31 October.

However, there's a whole plethora of expenses Revenue will allow you to claim back on to reduce the amount of tax you pay each year.

We have a dedicated tax return service for landlords

LEARN MORE

 

What can I claim expenses on?

Luckily the list of things you can claim as expenses is quite a bit longer than the list of things you can't. Some of them are fairly obvious – such as maintenance and wear and tear expenses - but the Revenue is also pretty reasonable in that it will deduct money for advertising and agency expenses as well.

 

Here is an overview of the expenses you're able to claim against your return every year as a Landlord in Ireland:

 

1. PRTB Registration

Unless you fall under certain extenuating circumstances (as with Rent-a-Room relief) it's necessary for Landlords to register with the Private Residents Tenancy Board.

At present, its €90 per tenancy and you have to register within a month of the tenancy's start date. If you're late, there's a fee of €180. The amount you pay to register multiple tenancies in a single building per year is typically capped at €375.

You can claim back the full amount for both the initial fee and the sum you paid per tenant, provided you haven't incurred any penalties for late registration.

 

2. Repairs and Maintenance/Wear and Tear


These essentially cover the cost of maintaining your property to a livable standard for your tenants. Repairs and Maintenance covers the cost of fixing broken windows/locks, servicing boilers etc, whereas Wear and Tear is a deduction taken off your taxable income to account for the price of furnishings and fittings if you've pre-furnished your property for tenants.

Note that Wear and Tear covers all expenditure on brand new furnishings (provided you keep all your receipts), but Repairs and Maintenance has to be essential and non-profitable to qualify. For example, you can claim maintenance if you hire someone to paint your property, but can't claim for your own labour if you paint it yourself.

 

We have a dedicated tax return service for landlords

LEARN MORE

 

Newspaper Advertising3. Advertising Expenses and Estate Agent Fees

Anything you pay towards publicising property you want to rent is fully claimable as part of your returns, be it through advertising (putting something in the paper or using a website such as Daft.ie, for example) or using the services of an estate agent.

 

More on advertising expenses.

 


4. Management/Agent Fees

If you use an intermediary to collect rent on your behalf or deal with tenants (as is the case for non-resident landlords, for example) this service is tax-deductible, so it's definitely worth considering if you're not confident renting a property independently straight away.

 

5. Local Service Charges

If you pay for rubbish collection, recycling, or make any other payments relating to services provided to your rental property by the local council, you are entitled to take a deduction for them. This only applies if you cover these charges – if you bill them to your tenants, you obviously won't be able to claim them back.

 

Read: Expenses for non-resident Landlords

 

6. Legal/Accounting Fees

It's tax-deductible if you've paid a professional to provide you with any legal or accounting services relating to your property - to have leases drawn up or to aid you with Stamp Duty, for example, or to prepare rental accounts. These are both extremely useful resources if you're not used to the more bureaucratic side of letting property, so you might want to look into this if you're drowning in unfamiliar paperwork!

 

7. Insurance Premiums

If you've taken out any insurance policies relating to rental properties, you're entitled to claim back on any premiums. This includes premiums paid on Mortgage Protection Policies.

 

What can I not claim expenses on?

So as you can see, generally speaking the list of things you are able to claim back as expenses is reasonably comprehensive. However, there are inevitably going to be a few taxes that you're liable for.

 

Repairs and Alterations for Landlords1. Pre-letting/post-letting Expenses

This is probably the most important one to bear in mind. If you're renting out property, repairs or alterations taken out when the property is not under lease are not tax deductible. If you're renovating a property in preparation for tenancy, those expenses are going to be off your own back, so just be sensible with regard to how much you spend to ensure you don't make a loss.

 


Read: 5 Things you should know if you host Airbnb

 

2. Stamp Duty

If you're buying a new property to rent, you'll have to pay 1% Stamp Duty on any purchase up to €1,000,000 and 2% balance on any amount after that bracket. This isn't tax deductible - However, any legal aid you get with regard to Stamp Duty is.

We have a dedicated tax return service for landlords

LEARN MORE

While the prospect of paying that hefty income tax on any earnings you make as a landlord might be daunting, you are entitled to a lot of leeway in terms of what you can claim. And remember – if you want to file that return without the hassle, Taxback.com provides a Landlord Returns service. Not only will we file the return for you, but we'll make sure you get the maximum rebate you're legally entitled to.

Click here for more information.

 

 

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About The Author

Ciara Kennedy - Digital Content Writer @ Taxback.com

Ciara is our Digital Content Writer at Taxback.com. Since graduating in Journalism and Visual media, Ciara has worked in online marketing in Ireland and Australia and loves writing in all its forms.

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