If you're a landlord in Ireland looking to improve your property's energy efficiency, there are tax incentives that can help offset the costs. From insulation to heat pumps, understanding what reliefs are available can make energy upgrades more affordable while increasing your property's value.
Our specialists help landlords navigate tax reliefs and ensure they're claiming everything available. Here's what you need to know about green incentives for rental properties.
📊 Energy Efficiency Incentives
- SEAI grants: Available for various upgrades
- Deductible expenses: Some improvements may qualify
- Higher rental value: Better BER = better returns
- Required standards: Minimum BER ratings coming
Tax Treatment of Energy Upgrades
The tax treatment of energy efficiency improvements depends on whether they're classified as repairs or improvements:
Repairs (Deductible)
Expenses that restore something to its original condition are deductible against rental income in the year incurred. For example, replacing a broken boiler with a like-for-like unit.
Capital Improvements
Upgrades that improve the property (like installing a heat pump where there wasn't one) are capital expenditure. While not immediately deductible, they can qualify for capital allowances or affect CGT calculations when you sell.
See our guide on common landlord tax mistakes for more on the repairs vs improvements distinction.
SEAI Grants
The Sustainable Energy Authority of Ireland (SEAI) offers grants for various energy upgrades. While grants themselves aren't tax reliefs, they reduce your out-of-pocket costs for improvements.
Note: When you receive a grant, you can only claim tax deductions on the portion you paid yourself, not the grant-funded portion.
Other Landlord Deductions
Beyond energy efficiency, landlords can claim various deductions against rental income:
- Mortgage interest: 100% deductible (with RTB registration)
- Insurance: Landlord/building insurance
- Repairs and maintenance: Not improvements
- Pre-letting expenses: Up to €5,000
- Management fees: Letting agent costs
💡 Important Reminder
Many landlords are also PAYE employees. Don't forget you may be entitled to PAYE reliefs like rent credit (if you rent your own home), medical expenses, and flat rate expenses for your employment.
How We Help Landlords
Our specialists can review your complete tax situation:
- Rental deductions: Ensure you're claiming everything allowable
- PAYE reliefs: Find refunds from your employment
- Historical review: Check past years for missed claims
- Expert guidance: Clarify what's deductible vs capital
Learn more about how our service works.
Landlord? Let Us Review Your Tax
Our experts will ensure you're claiming all allowable deductions and reliefs.
Get Your Free Review →No refund, no fee • TAIN: 77632V
Frequently Asked Questions
Can I deduct the cost of a new heat pump?
A new heat pump is typically a capital improvement, not an immediate deduction. However, it may qualify for capital allowances. Our team can advise on your specific situation.
What about insulation?
Adding insulation where none existed is an improvement (capital). Repairing existing insulation may be deductible. The classification depends on the specific work done.
Do SEAI grants affect my tax?
Grants reduce your out-of-pocket cost. For tax purposes, you can only claim deductions on the portion you actually paid—not the grant amount.