New tax developments for landlords

Recent changes in tax legislation have introduced developments of interest to the private rental sector. In this article, we summarise the key updates and how landlords can benefit from them.

Residential Premises Rental Income Relief (RPRIR)

Finance (No. 2) Act 2023 introduced a new tax credit that will be of great benefit to those who earn rental income from residential premises. This relief applies for the tax years 2024 to 2027 inclusive.

This is a welcome development for landlords, below, we provide an overview of the benefit and the criteria for availing it.

What is RPRIR?
Residential Premises Rental Income Relief (RPRIR) is available to all individual landlords of ‘qualifying premises’. Broadly speaking, a qualifying premises is an Irish residential property that, on the 31 December of the year for which the relief is claimed, is either occupied by a tenant or is being actively marketed for rental.

Where RPRIR is claimed on the basis that the property is being actively marketed for rent, the landlord will be required to demonstrate that this is the case (for example, by producing copies of advertisements for the letting).

RPRIR limits by tax year
In general terms, the maximum amount of RPRIR that can be claimed is set out below:

2024The lesser of €600 or 20% of a landlord’s net rental income*
2025The lesser of €800 or 20% of a landlord’s net rental income*
2026The lesser of €1,000 or 20% of a landlord’s net rental income*
2027The lesser of €1,000 or 20% of a landlord’s net rental income*

*Net rental income is calculated after deductions for capital allowances and rental losses carried forward.

Key conditions

Claim process: Relief is claimed via the tax return for the relevant year (e.g., for 2024, claims are submitted by 31 October 2025). This is a credit against income tax and does not impact any liability to USC or PRSI.

Restrictions: Relief is not available for properties rented to certain family members or connected parties.

Tax compliance: Landlords must hold a valid Tax Clearance Certificate and be fully tax-compliant (e.g., LPT obligations).

Scope: Relief applies exclusively to rental income from qualifying residential premises. It cannot offset income from commercial rents or non-qualifying properties.

No refunds: RPRIR does not generate a refund and is unavailable if the landlord incurs an overall rental loss.

Pre-letting expenditure on vacant residential premises

Certain expenses incurred on a vacant residential premises prior to it being first let after a period of non-occupancy (pre-letting expenses) can be claimed as a deduction against rental income from that premises.

This scheme, designed to encourage landlords to bring vacant properties back to the rental market, has been extended to 31 December 2027.

Qualifying criteria

  • The property must have been vacant for at least six months before letting.
  • Expenses must be incurred within the 12 months prior to the first letting as a residential premises.

Deduction limit
The cap on deductible pre-letting expenses increased from €5,000 to €10,000 for expenses incurred after 1 January 2023.

Clawback provision
If the property ceases to be let as a residential premises within four years of the first letting, the deduction will be clawed back. The previously allowed deduction will be treated as income in the year the property ceases to be let.

If you wish to discuss any of the above rental income measures or any other related, feel free to contact any member of our Private Client team. If you feel you may be entitled to avail of any of the above tax benefits, we would be more than happy to assist in your claim.

Staff memberPositionEmailTelephone
Alan MurrayTax Partneramurray@mazars.ie01 449 6480
Siobhán O’MooreTax Directorsomoore@mazars.ie01 449 6418

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