Stamp Duty
Paid on purchase — based on the full purchase price
Stamp Duty is a one-off tax paid by the buyer at completion. It is calculated on the entire purchase price (not the mortgage), and must be paid within 44 days of the deed being executed.
| Property Type | Price Band | Rate | Effective Cost |
|---|---|---|---|
| Residential (house / apartment) | Up to €1,000,000 | 1% | €10,000 on €1M |
| Above €1,000,000 | 2% on excess | €10,000 + 2% above €1M | |
| Non-residential (commercial, land) | All values | 7.5% | — |
| Bulk purchase of 10+ homes | All values | 10% | Applies to each house/apt |
First-time buyer relief was abolished from November 2023 for residential property. The 1% rate applies equally to all buyers.
Quick example: Purchasing a €450,000 apartment → Stamp Duty = €450,000 × 1% = €4,500. Purchasing a €1,200,000 house → €10,000 + (€200,000 × 2%) = €14,000.
Rental Income Tax
Irish resident landlords pay income tax, USC and PRSI on net rental profit
Rental income (after allowable deductions) is taxed as ordinary income. The effective tax rate depends on whether your total income falls within the standard rate band.
| Tax | Rate | Notes |
|---|---|---|
| Income Tax — Standard rate | 20% | Up to €44,000 (single, 2025) |
| Income Tax — Higher rate | 40% | All income above the standard rate band |
| Universal Social Charge (USC) | 0.5% – 8% | Marginal rate 8% above €70,044; 4% on €25,760–€70,044 |
| PRSI (Class S self-employed) | 4% | On net rental income above €5,000/year |
Most higher-rate taxpayer investors pay an effective marginal rate of ~52% on net rental income (40% IT + 8% USC + 4% PRSI). Allowable deductions reduce the taxable profit significantly — see the Deductions section below.
Annual filing: Rental income must be declared on a Form 11 (self-assessed) each year, due by 31 October (extended to mid-November for ROS online filers). Preliminary tax (90% of prior year liability) is also due on the same date.
Non-Resident Landlord Rules
20% withholding tax applies — two options for collection
If you live outside Ireland (non-resident), you are still liable for Irish tax on Irish rental income. Revenue requires that tax is collected at source — you have two options:
| Option | How it works | Practical notes |
|---|---|---|
| 1. Appoint a Collection Agent | Nominate an Irish-resident person or letting agent to collect rent on your behalf and pay tax to Revenue. Agent files returns and remits tax. | Most common for overseas investors. Property management companies typically offer this service for ~8–12% of gross rent. |
| 2. Tenant Deduction | Tenant deducts 20% from each rent payment and remits it to Revenue directly, using Form R185. They give you the net rent. | Practically unusual — most tenants are unwilling. If no collection agent is appointed, the tenant is legally required to deduct. |
Regardless of the withholding method, you must file an annual Form 11 with Revenue to declare rental income, claim deductions, and pay any remaining tax (or claim refunds if overpaid). You will need an Irish PPS number.
Tax treaty relief: Ireland has double taxation treaties with 74 countries. Non-residents may be eligible to offset Irish tax paid against home-country tax obligations. Check with a qualified tax adviser in both jurisdictions.
Capital Gains Tax (CGT)
33% on gain above the annual exemption — payable on disposal
CGT applies when you sell an Irish property at a profit. The gain is the sale price minus the original purchase price and allowable costs.
| Item | Detail |
|---|---|
| CGT Rate | 33% |
| Annual personal exemption | €1,270 per person, per year (not transferable between years) |
| Indexation relief | Available for assets acquired before 31 December 2002 — adjusts cost for inflation |
| Payment deadline (Jan–Nov disposals) | 15 December of the same year |
| Payment deadline (December disposals) | 31 January of the following year |
Allowable costs that reduce your gain: purchase price, Stamp Duty, solicitor fees, survey fees, estate agent fees on sale, legal fees on sale, capital improvements (not repairs), and enhancement expenditure.
Example: Buy at €300,000, sell at €450,000 after 7 years. Selling costs €8,000. Gain = €450,000 − €300,000 − €8,000 = €142,000. Less annual exemption €1,270 = taxable gain €140,730. CGT = €140,730 × 33% = €46,441.
Principal Private Residence (PPR) relief: If the property was your main home for any period, the gain may be partly exempt in proportion to the time lived there. Final 12 months of ownership always count as PPR even if not resident. This does not apply to pure investment properties.
Local Property Tax (LPT)
Annual self-assessed tax based on Revenue valuation bands — updated 2022
LPT is payable annually by all residential property owners. Valuation bands were reset in 2022 (based on 1 November 2021 values) and are fixed until the next revaluation (scheduled for 2025, but not yet confirmed). Local authorities can vary the rate by up to ±15% of the base amount.
| Valuation Band | Mid-point | Annual LPT (base) |
|---|---|---|
| Up to €200,000 | €100,000 | €90 |
| €200,001 – €262,500 | €231,250 | €225 |
| €262,501 – €350,000 | €306,250 | €315 |
| €350,001 – €437,500 | €393,750 | €405 |
| €437,501 – €525,000 | €481,250 | €495 |
| €525,001 – €612,500 | €568,750 | €585 |
| €612,501 – €700,000 | €656,250 | €675 |
| €700,001 – €787,500 | €743,750 | €765 |
| €787,501 – €875,000 | €831,250 | €855 |
| €875,001 – €962,500 | €918,750 | €945 |
| €962,501 – €1,050,000 | €1,006,250 | €1,035 |
| Above €1,050,000 | Self-assessed at 0.1029% up to €1.75M, then 0.3% above | |
LPT is deductible against rental income as an allowable expense. Dublin City Council has consistently applied the maximum local adjustment (currently +15%), so actual LPT may be higher than the base rate shown above. Check your local authority's current rate at Revenue.ie.
Allowable Deductions Against Rental Income
Reduce your taxable profit — must be wholly and exclusively for rental purposes
| Deductible Expense | Rules & Limits |
|---|---|
| Management / letting agent fees | 100% deductible — typically 8–12% of gross rent |
| Mortgage interest | 100% deductible from 2024 (was 80% pre-2023). Property must be registered with RTB and rents must comply with RPZ rules. |
| Repairs and maintenance | 100% deductible — routine repairs only (not improvements/capital expenditure) |
| Insurance (buildings + contents) | 100% deductible |
| Local Property Tax (LPT) | 100% deductible |
| Accountancy / tax preparation fees | 100% deductible |
| RTB registration fee | 100% deductible (landlords must register with RTB or lose mortgage interest deduction) |
| Wear & tear (depreciation on furniture/fittings) | 12.5% per year on cost of qualifying plant and furniture, over 8 years |
| Pre-letting expenses | Allowable if incurred in the 12 months before first letting — e.g. painting, repairs |
Mortgage interest — key condition: To claim 100% mortgage interest relief, the property must be registered with the Residential Tenancies Board (RTB) and the rent charged must not exceed the applicable RPZ rent cap. Failure to comply with either condition removes the deduction entirely.
What is NOT deductible: Capital expenditure (extensions, new kitchens), principal mortgage repayments, legal costs for acquisition, personal expenses, depreciation of the building itself.
Rent Pressure Zone (RPZ) Rules
All of Ireland is now an RPZ — rent increases capped since June 2025
From June 2025, the entire country of Ireland is designated a Rent Pressure Zone (RPZ). This means:
| Rule | Detail |
|---|---|
| Annual rent increase cap | CPI inflation rate or 2%, whichever is lower |
| Effective from | 1 March 2026 (new cap; previously linked to HICP) |
| Notice period for increase | 90 days written notice required before any rent increase takes effect |
| Frequency of increases | No more than once every 12 months |
| New tenancies | Rent must not exceed the last registered RTB rent for the property (if within 2 years) |
| RTB registration | Mandatory for all rental properties — tenancy must be registered within 1 month of commencement |
Investment implication: With rent increases capped at CPI/2%, future income growth should be modelled conservatively. At current Irish CPI of ~2%, the cap allows only €20/month increase on a €1,000/month rent per year.
Use our Net Return Calculator to model your return under RPZ constraints, and our Yield Calculator to compare current rents across all 26 counties.
Quick Reference — Key Numbers
Stamp Duty (residential, ≤€1M)1%
Stamp Duty (residential, >€1M excess)2%
Non-resident withholding tax on rent20%
Income tax — standard rate20%
Income tax — higher rate40%
USC marginal rate (>€70,044)8%
PRSI — Class S (self-employed landlord)4%
Effective marginal rate (higher-rate taxpayer)~52%
Mortgage interest deductibility100% (since 2024)
Capital Gains Tax (CGT)33%
CGT annual personal exemption€1,270/year
LPT — €300k property (base rate)€315/year
LPT — €500k property (base rate)€495/year
RPZ rent increase cap (from Mar 2026)CPI or 2%, lower
RTB registration — required within1 month
Annual tax return (Form 11) deadline31 Oct (ROS: ~14 Nov)
Important: This guide is for informational purposes only and does not constitute tax or financial advice. Tax rules change frequently. Always consult a qualified Irish tax adviser (e.g., a Chartered Tax Adviser registered with the Irish Tax Institute) before making investment decisions. Data sourced from Revenue.ie and the Residential Tenancies Board — correct as of April 2026.
Useful official sources: Revenue.ie — Property taxes · Residential Tenancies Board (RTB) · Revenue — Rental Income guidelines (PDF)
Useful official sources: Revenue.ie — Property taxes · Residential Tenancies Board (RTB) · Revenue — Rental Income guidelines (PDF)