TAS Consulting

Taxes are a complex subject, and they can become even more confusing when you factor in real estate. However, we hope to make it simpler for you with our Top Tax Tips for New Landlords.

You must declare any rental property income to Revenue if you have any. This can be accomplished by declaring your rental income when you file for income tax. This has to be done starting on the day you initially rent out your property. After registering for income tax, you are subsequently in charge of filing an annual tax return that informs Revenue of the amount of income you earned the previous year.

The owner is liable for paying the local property tax (LPT), which is based on the market value of the property. You cannot include this as an expense on your tax return.

Landlords are required by law to pay €90 to register with the Residential Tenancies Board. However, once you have registered with the RTB, you can claim a tax deduction for the €90 registration cost as well as a tax relief deduction for mortgage interest against your rental income.

Some landlords will utilise rental money to settle the mortgage on their properties. However, it is important to keep in mind that only mortgage interest, not the entire mortgage payment, can be deducted from your income on your tax return. Capital allowances are a factor that is frequently overlooked when estimating the earnings on a rental property. Long-lasting things like furniture are considered capital allowances. These items may be written off at a rate of 12.5% per year, or in other words, at a rate of 12.5% over a period of 8 years.

Once you have registered for Income Tax, you must pay a preliminary tax, which is a payment toward your current tax year’s bill. If you are a self-assessed taxpayer in your first year, you are not compelled to make this payment, but you can contribute to it for the following year to keep the cost down. If you choose not to pay any preliminary tax in your first year, you may end up paying twice in the second year since, even if you were not required to pay it in the first year, the first year is still taxable.

  • Accountancy Fees for the Residence
  • Tenancy Board (PRB)
  • Mortgage Payments
  • Advertising
  • Property Repair and Maintenance
  • Fees for Estate Agents
  • Fees for Management Companies

We hope you found this blog useful.

Please contact us for more information and we’ll be happy to answer any questions you may have on +353 1 442 8230, Mobile/Whatsapp +353 85 1477625 or fill the form we’ll get back to you as soon as possible.