Top Rental Income Tax Mistakes Irish Landlords Make (And How to Avoid Them)

As an Irish landlord, you're required to declare rental income and pay the appropriate tax. But with complex rules around allowable expenses, deductions, and reliefs, it's easy to make costly mistakes—either paying too much tax or risking penalties for underpayment.

Our tax specialists regularly help landlords identify errors in their rental income calculations. Whether you've been over-claiming expenses or missing out on legitimate deductions, getting professional advice can make a significant difference to your tax bill.

Common Mistakes Landlords Make

After reviewing hundreds of landlord tax situations, we've identified the most common errors that cost property owners money:

1. Missing Allowable Expenses

Many landlords don't claim all the expenses they're entitled to. Allowable deductions include:

• Mortgage interest (100% deductible)
• Insurance premiums for the property
• Management fees and letting agent costs
• Repairs and maintenance (not improvements)
• Accountancy fees for preparing rental accounts
• Legal fees for short leases and rent collection

2. Confusing Repairs with Improvements

This is one of the most common errors. Repairs (restoring something to its original condition) are fully deductible. Improvements (upgrading or enhancing the property) are not immediately deductible—they're capital expenditure.

For example: replacing a broken boiler with a similar model is a repair. Installing a brand new, upgraded heating system is an improvement. The distinction matters significantly for your tax bill.

3. Forgetting Pre-Letting Expenses

If your property was vacant before you rented it out, certain expenses incurred to bring it to a rentable standard may be deductible. Many landlords don't realise this and miss out on legitimate claims.

4. Not Registering with the RTB

Failure to register your tenancy with the Residential Tenancies Board (RTB) means you cannot claim mortgage interest relief. This is a costly oversight that many accidental landlords make.

5. Poor Record Keeping

Revenue can request documentation to support your expense claims. Without proper records—receipts, invoices, bank statements—you may lose deductions you're legitimately entitled to.

Are You a PAYE Worker Who's Also a Landlord?

Many Irish landlords are also employees paying tax through PAYE. If that's you, there are additional considerations:

• You must file an annual Form 11 tax return
• Your rental income is added to your employment income
• You may be paying more tax than necessary if credits aren't optimised
• You might also be entitled to rent tax credit if you rent your own home

Don't forget you can still claim PAYE reliefs like medical expenses, work expenses, and more—these apply regardless of your rental income.

How We Help Landlords

Our tax specialists can review your situation and identify opportunities you may have missed:

• Complete expense review: We check you're claiming everything you're entitled to
• PAYE tax check: If you're also employed, we review your employment tax for additional reliefs
• Four-year review: We can amend returns for up to four previous years
• Expert guidance: Clear advice on what you can and can't claim

Learn more about how our service works.

Frequently Asked Questions