📊 Budget 2025 Landlord Changes at a Glance
- Mortgage Interest Deduction: 100% deductible against rental income
- Pre-Letting Expenses: Up to €10,000 claimable per property
- Rent-a-Room Relief: €14,000 annual threshold
- Rental Income Tax: Standard income tax rates apply
- Filing Deadline: October 31st (paper) / Mid-November (online)
Budget 2025 brought several significant changes for Irish landlords. Understanding these updates is essential for maximising your rental income and ensuring you're claiming all available reliefs.
Whether you're a long-term landlord or considering entering the rental market, staying informed about tax changes can significantly impact your bottom line. MyTaxRebate.ie helps landlords navigate these changes and claim all available deductions to minimise their tax bill.
Mortgage Interest Relief: Still 100% Deductible
Good news for landlords with mortgages on rental properties: you can continue to deduct 100% of your mortgage interest against your rental income. This remains one of the most valuable deductions available.
Example: Mortgage Interest Deduction
| Annual Rental Income | €18,000 |
| Mortgage Interest Paid | -€6,000 |
| Other Deductible Expenses | -€3,500 |
| Taxable Rental Profit | €8,500 |
To claim mortgage interest, you must be registered with the Residential Tenancies Board (RTB) and have a valid tenancy registered. This is a legal requirement and failure to register can result in penalties. Our specialists ensure all your documentation is in order for maximum deductions.
Allowable Expenses Every Landlord Should Claim
Beyond mortgage interest, landlords can deduct numerous expenses against rental income. Many landlords miss these deductions, paying more tax than necessary:
- Property Insurance: Landlord insurance premiums are fully deductible
- Repairs and Maintenance: Fixing boilers, painting, plumbing repairs (not improvements)
- Management Fees: Letting agent fees, property management costs
- Accountancy Fees: Costs of preparing rental accounts and tax returns
- Legal Fees: Costs for drawing up leases, RTB registration
- Advertising: Costs of advertising for tenants
- Wear and Tear: 12.5% annual allowance on furniture and fittings
Pre-Letting Expenses: Up to €10,000 Relief
If you're bringing a property back to the rental market after a vacancy of 12 months or more, you may be able to claim pre-letting expenses up to €10,000.
📋 Pre-Letting Expense Requirements
- Property must have been vacant for at least 12 months
- Expenses must be incurred in the 12 months before letting
- Property must be let for at least 4 years after claiming
- Maximum claim of €10,000 per property
Maximise Your Rental Deductions
Our specialists help landlords claim every available expense and relief.
Get Your Free Review →Rent-a-Room Relief: €14,000 Tax-Free
If you rent out a room (or rooms) in your own home, you can earn up to €14,000 per year completely tax-free under the Rent-a-Room scheme. This applies to:
- Renting a room to a lodger
- Providing digs to students
- Hosting short-term guests (provided it's your main residence)
- The room must be in your principal private residence
⚠️ Important: Stay Under the Limit
If your rental income exceeds €14,000, the entire amount becomes taxable, not just the excess. Careful planning is essential to stay within the threshold.
Tax Rates on Rental Income
After all allowable deductions, your rental profit is added to your other income and taxed at your marginal rate:
| Tax Type | Rate |
|---|---|
| Income Tax (standard rate) | 20% |
| Income Tax (higher rate) | 40% |
| PRSI (if applicable) | 4% |
| USC (varies by income) | 0.5% - 8% |
This is why maximising your deductions is so important—every legitimate expense you claim reduces your taxable profit and therefore your tax bill. Professional advice can help ensure you're not paying more tax than necessary on your rental income.
Energy Efficiency and Green Reliefs
Budget 2025 continues incentives for landlords who improve the energy efficiency of their rental properties. Making your property more energy-efficient can reduce costs and make it more attractive to tenants while providing tax benefits.
Eligible improvements include insulation, heating system upgrades, solar panels, and other energy-saving measures. While capital improvements aren't directly deductible, grants like SEAI home energy grants can offset costs, and certain improvements may qualify for accelerated capital allowances.
Our team can advise on the most tax-efficient approach to property improvements and ensure you're claiming all available green reliefs.
Record Keeping Requirements
Good record keeping is essential for landlords. Revenue can ask you to substantiate any expense you claim, and you must keep records for at least 6 years. Key documents to retain include:
- Rental agreements and RTB registration certificates
- Bank statements showing rental income received
- Mortgage statements showing interest paid
- Receipts for all repairs and maintenance
- Insurance premium documents
- Management agent invoices
Key Deadlines for Landlords
Missing deadlines can result in penalties and interest charges. Key dates for 2025:
- Preliminary Tax: Pay by 31st October (or mid-November if filing online)
- Income Tax Return: File by 31st October (paper) or mid-November (ROS)
- RTB Registration: Within one month of tenancy starting
- Local Property Tax: Annual payment or direct debit arrangement
Frequently Asked Questions
Can I claim for property improvements?
No. Capital improvements (new kitchen, extension, etc.) cannot be claimed as expenses. However, they may reduce any future Capital Gains Tax when you sell. Repairs and maintenance are different—these can be claimed.
Do I need to register with the RTB?
Yes, for most rentals. You must register each tenancy with the Residential Tenancies Board within one month of the tenancy commencing. Without RTB registration, you cannot claim mortgage interest deduction.
What if my rental property is jointly owned?
Rental income and expenses are typically split according to ownership percentage. Both owners must include their share in their individual tax returns.
Can MyTaxRebate.ie help with landlord taxes?
Yes! Our specialists help landlords maximise their deductions and ensure all reliefs are claimed. We review your situation and identify opportunities you might miss handling it yourself.
What happens if I have rental losses?
If your allowable expenses exceed your rental income, you make a rental loss. This loss can be carried forward and set against future rental profits from the same property or other Irish rental properties. You cannot, however, offset rental losses against other income like salary.
Get Expert Help with Your Rental Tax
Don't leave money on the table. Our specialists ensure you claim every deduction you're entitled to.
Start Your Free Review →