Tax relief for landlords in Ireland - what you need to know about the Residential Premises Rental Income Relief
A new relief was introduced in Budget 2024 with the aim of assisting landlords operating within the Irish housing market.
The relief - known as the Residential Premises Rental Income Relief (RPRIR) - is a new tax credit which encourages smaller landlords to keep their property available for rent for the next four years.
However, not every landlord will be eligible for the new credit.
In this blog, we’ll delve into the RPRIR, and see what you will need to do to meet the eligibility criteria and claim this tax credit.
What is the Residential Premises Rental Income Relief?
It’s safe to say that many smaller landlords in Ireland can find the process of filing self-assessed tax returns difficult and are thus unaware of many of the reliefs which are applicable to them.
This is an area the government targeted in Budget 2024, and so brought in the RPRIR.
The RPRIR is a brand new Irish tax credit for landlords who agree to keep their rental properties on the market for the next four years.
If you are a landlord, you could be due a tax refund
What are the eligibility criteria for the RPRIR?
There are various criteria you must meet to qualify for the RPRIR.
In order to successfully claim the relief, on 31 December of the year in which relief is being claimed, you must:
-
own the qualifying residential premises
-
hold a valid Tax Clearance Certificate
and
-
be Local Property Tax (LPT) compliant.
There are also criteria that the qualifying premises must meet.
For example, the property must be:
-
rented under a tenancy registered with the Residential Tenancies Board (RTB)
-
rented to a tenant and be a formerly rent controlled premises not required to be RTB registered
-
rented to a local authority
-
or
-
actively marketed for rent.
How much can I claim with the RPRIR?
Put simply, the amount that you can claim will depend on the year of assessment for which you claim the relief.
That’s because the amount claimable for each year is restricted to the lessor of:
-
€600 in 2024
-
€800 in 2025
-
€1,000 in 2026 and 2027
or -
20% of your total rental income profit from rented residential premises (less capital allowances and any losses carried forward) for the year.
The average Irish tax refund is €1,880
Can I claim the RPRIR for multiple properties?
No.
If you are a landlord with more than one residential premises, you can only claim a single tax relief for each year.
If you are a landlord, you could be due a tax refund
How can I claim the RPRIR?
The easiest way to claim the RPRIR is by using Taxback!
Sure, you could always complete the tricky paperwork by yourself, but why not ensure you are FULLY tax compliant?
Taxback will do just that for you. When you use our service, we will file a compliant tax return, minimise your tax bill and ensure you claim everything you’re owed
So, get started today - file your tax return and secure your refund!
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