10 Tax Deductions Irish Landlords Miss (Save €1000s)

As an Irish landlord, you're legally required to pay tax on your rental income. But are you claiming ALL the deductions you're entitled to?

Most landlords miss out on significant tax savings because they don't know which expenses are deductible. In this comprehensive guide, we'll reveal the 10 most commonly overlooked tax deductions that could save you thousands of euros every year.

💡 Quick Stat: The average Irish landlord can save €2,000-€5,000 annually by claiming all legitimate tax deductions.

How Rental Income Tax Works in Ireland

Before we dive into deductions, here's a quick overview:

Rental Income is Taxable

All rental income you receive is subject to:

• Income Tax (20% or 40% depending on your bracket)
• USC (Universal Social Charge, up to 8%)
• PRSI (Pay Related Social Insurance, 4%)

Example:

• Gross rental income: €24,000/year
• Without deductions: Pay tax on full €24,000
• With €10,000 in deductions: Pay tax on only €14,000
• Tax saving: €5,000+ per year!

What Qualifies as a Deduction?

According to Revenue, you can deduct expenses that are:

1. Wholly and exclusively incurred for rental purposes
2. Not capital expenses (those add to property value)
3. Actually incurred (you have receipts/proof)

Now, let's explore the deductions most landlords miss!

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1. Mortgage Interest (75% Deductible)

What it is: Interest (not capital repayment) on your mortgage or loan used to purchase, improve, or repair the rental property.

Deduction rate: 75% of mortgage interest paid

Example:

• Annual mortgage interest paid: €10,000
• Deductible amount: €7,500 (75% of €10,000)
• Tax saving at 40%: €3,000

Common mistakes: ❌ Claiming the entire mortgage payment (only interest is deductible)
❌ Claiming 100% of interest (it's capped at 75%)
❌ Not keeping separate records for rental property mortgage

How to claim:

• Get a statement from your lender showing interest vs. capital breakdown
• Claim on Form 11 or through your online ROS account
• Keep all mortgage statements as proof

💰 Average saving: €2,500-€4,000 per year

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2. Property Management Fees

What it is: Fees paid to property management companies, letting agents, or platforms like SmartRent.ie.

Fully deductible: 100% of management fees

Includes: ✅ Property management software subscriptions
✅ Letting agent fees
✅ Rent collection services
✅ Property inspection fees
✅ SmartRent.ie subscription fees

Example:

• SmartRent.ie subscription: €29/month = €348/year
• Letting agent fee: 10% of rent = €2,400/year
• Total deductible: €2,748
• Tax saving at 40%: €1,099

Why landlords miss it: Many don't realize software subscriptions and digital platforms count as management expenses.

💰 Average saving: €800-€1,500 per year

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3. Repairs and Maintenance

What it is: Costs to maintain the property in its current condition.

Fully deductible: 100% of repair costs

Deductible repairs include: ✅ Fixing broken boilers or heating systems
✅ Repairing damaged windows or doors
✅ Plumbing repairs (leaks, blockages)
✅ Electrical repairs
✅ Roof repairs (not replacement)
✅ Painting and decorating
✅ Replacing broken appliances (like-for-like)

NOT deductible (these are capital improvements): ❌ Installing a new kitchen (upgrade)
❌ Adding an extension
❌ Converting attic to bedroom
❌ Installing central heating for the first time

Example:

• Boiler repair: €500
• Emergency plumbing: €300
• Repainting after tenant: €800
• Total deductible: €1,600
• Tax saving at 40%: €640

Common mistake: Landlords often don't claim small repairs (€50-€200) because they forget to keep receipts. These add up!

Pro tip: Use SmartRent.ie's expense tracking to automatically categorize and store all repair receipts.

💰 Average saving: €600-€2,000 per year

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4. Local Property Tax (LPT)

What it is: The annual Local Property Tax you pay on your rental property.

Fully deductible: 100% of LPT paid

Example:

• LPT for a Dublin property: €405/year
• Tax saving at 40%: €162

Why landlords miss it: LPT is automatically deducted from salary or paid directly, so landlords forget it's rental-related.

How to claim:

• Log into revenue.ie to get your LPT payment history
• Claim on Form 11 under "Local Property Tax"

💰 Average saving: €150-€250 per year

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5. Accountant and Legal Fees

What it is: Professional fees related to your rental business.

Fully deductible: 100% of relevant professional fees

Includes: ✅ Accountant fees for preparing rental income tax returns
✅ Solicitor fees for lease disputes
✅ Legal fees for tenant evictions (RTB processes)
✅ Tax advisor consultations about rental income
✅ Notary fees for rental documents

Example:

• Annual accountant fee: €400
• Legal consultation: €200
• Total deductible: €600
• Tax saving at 40%: €240

NOT deductible: ❌ Legal fees for buying/selling the property (these are capital)

💰 Average saving: €200-€500 per year

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6. Insurance Premiums

What it is: All insurance directly related to your rental property.

Fully deductible: 100% of premiums

Deductible insurance includes: ✅ Landlord insurance (buildings and contents)
✅ Rent guarantee insurance
✅ Public liability insurance
✅ Loss of rent insurance
✅ Legal expenses insurance

Example:

• Landlord insurance: €600/year
• Rent guarantee insurance: €300/year
• Total deductible: €900
• Tax saving at 40%: €360

Common mistake: Landlords who have one policy covering their own home AND rental property forget to split and claim the rental portion.

💰 Average saving: €350-€600 per year

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7. Advertising and Marketing Costs

What it is: Costs to advertise your property for rent.

Fully deductible: 100% of advertising costs

Includes: ✅ Daft.ie listing fees
✅ Rent.ie premium listings
✅ Professional property photography
✅ "For Rent" signs
✅ Flyers and brochures
✅ Social media advertising

Example:

• Daft.ie premium listing: €179 (one-time)
• Professional photos: €150
• Social media ads: €50
• Total deductible: €379
• Tax saving at 40%: €152

Why landlords miss it: These are often one-time costs at the start of a tenancy, so they're forgotten by tax return time.

💰 Average saving: €150-€400 per year

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8. Utilities and Service Charges

What it is: Utilities you pay on behalf of your rental property.

Deductible if YOU pay them (not tenant):

Usually deductible: ✅ Management company fees (apartments)
✅ Refuse collection (if included in rent)
✅ Water charges (if you pay them)
✅ Internet (if included in rent)
✅ Communal electricity (apartment buildings)

NOT deductible if tenant pays: ❌ Electricity bills paid by tenant
❌ Gas bills paid by tenant

Example:

• Apartment management fee: €1,200/year
• Refuse collection: €300/year
• Total deductible: €1,500
• Tax saving at 40%: €600

💰 Average saving: €400-€800 per year

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9. Wear and Tear Allowance (12.5% of Furniture/Fixtures)

What it is: An annual allowance for wear and tear on furniture and fittings in a fully furnished rental property.

Deduction rate: 12.5% of furniture/fixtures cost per year (for 8 years)

Qualifies if you provide: ✅ Furniture (beds, sofas, tables, chairs)
✅ White goods (fridge, washing machine, dryer)
✅ Curtains and carpets
✅ Kitchen appliances (microwave, toaster, etc.)
✅ TVs and electronics

Example:

• Total furniture/fixtures cost: €10,000
• Annual wear and tear allowance: €1,250 (12.5%)
• Tax saving at 40%: €500/year

Important notes:

• You can claim this for 8 years after purchase
• Keep invoices for all furniture purchases
• Property must be "fully furnished" (not just a bed and table)

Why landlords miss it: Many don't know this allowance exists or forget to claim it after the first year.

💰 Average saving: €400-€700 per year

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10. PRTB/RTB Registration and Fees

What it is: All fees paid to the Residential Tenancies Board.

Fully deductible: 100% of RTB fees

Includes: ✅ New tenancy registration (€90)
✅ Annual renewal fees (€90)
✅ Rent increase registration (usually no fee, but any admin costs)
✅ Dispute resolution fees
✅ Copies of registration documents

Example:

• 2 properties with annual renewal: €180/year
• Tax saving at 40%: €72

Why landlords miss it: It's a "small" expense that gets forgotten, but if you have multiple properties, it adds up!

💰 Average saving: €70-€150 per year

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Bonus Tip: Pre-Letting Expenses

What it is: Expenses incurred to get a property ready for letting (first-time landlords).

Time limit: Deductible if incurred in the year you first let the property or the previous year.

Includes: ✅ Auctioneer's valuation fees
✅ Advertising for first tenant
✅ Legal fees for drafting first lease

Example:

• Property valuation: €150
• First advertising costs: €200
• Total deductible: €350
• Tax saving at 40%: €140

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How to Claim Your Deductions

Step 1: Keep Detailed Records

• Digital receipts: Use SmartRent.ie to store all expense receipts automatically
• Bank statements: Proof of payment
• Invoices: From contractors, agents, and service providers

Step 2: Categorize Expenses

Organize by category:

• Mortgage interest
• Repairs and maintenance
• Management fees
• Insurance
• Etc.

SmartRent.ie's expense tracker categorizes automatically!

Step 3: Complete Your Tax Return

Form 11 (Self-Assessed):

• File online through ROS (Revenue Online Service)
• Deadline: October 31st (online) or 31st October following tax year

PAYE workers with rental income:

• Must register for self-assessment
• Complete Form 11 annually

Form 12 (PAYE with rental income < €5,000):

• Can request Form 12 from Revenue
• Simpler process for small rental income

Step 4: Submit Before Deadline

• Online (ROS): October 31st
• Paper: Mid-October (earlier deadline)

Late filing penalties:

• Up to €4,000 fine
• Interest charges on unpaid tax

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Common Tax Mistakes to Avoid

Mistake #1: Not Claiming Small Expenses

€50 here, €100 there—they add up! Track EVERYTHING.

Mistake #2: Mixing Personal and Rental Expenses

Only rental-related costs are deductible. Keep separate bank accounts.

Mistake #3: Capital vs. Revenue Expenditure Confusion

Revenue (deductible): Repairs that maintain the property
Capital (not deductible immediately): Improvements that add value

When in doubt, ask an accountant!

Mistake #4: No Receipts = No Deduction

Revenue can audit you up to 4 years back. Keep ALL receipts.

Mistake #5: Claiming 100% of Expenses You Also Benefit From

If you use something personally AND for rental (e.g., your car to visit properties), only claim the rental portion.

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Total Potential Tax Savings

For a typical 2-bed rental property in Dublin:

| Expense Category | Annual Cost | Tax Saving (40%) | |----------------------|-----------------|----------------------| | Mortgage Interest (75%) | €7,500 | €3,000 | | Management Fees | €2,000 | €800 | | Repairs & Maintenance | €1,500 | €600 | | Insurance | €900 | €360 | | LPT | €400 | €160 | | Accountant | €400 | €160 | | Advertising | €300 | €120 | | RTB Fees | €180 | €72 | | Utilities/Service Charges | €1,200 | €480 | | Wear & Tear (Furniture) | €1,250 | €500 | | TOTAL | €15,630 | €6,252/year |

That's over €6,000 in annual tax savings!

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How SmartRent.ie Maximizes Your Tax Deductions

Automatic Expense Tracking

• Every payment is logged and categorized
• Receipts stored digitally (Revenue-compliant)
• Export reports for your accountant

Tax Report Generation

• One-click tax summary reports
• All expenses organized by category
• Ready for Form 11 submission

Depreciation Calculator

• Tracks wear and tear allowances automatically
• Alerts when items reach end of 8-year cycle

Receipt Storage

• Cloud-based storage (never lose a receipt)
• Mobile app for instant uploads
• Automatic categorization

Accountant Export

• Export data in Excel, CSV, or PDF
• Pre-formatted for accountants
• Saves hours of manual data entry

Result: Claim every deduction you're entitled to, save thousands, and reduce tax prep time by 90%.

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Get Professional Advice

While this guide covers the most common deductions, tax law can be complex. Consider consulting:

Tax Advisors:

• Chartered Accountants Ireland members
• Tax specialists with rental property experience

Revenue Resources:

• Revenue.ie rental income guides
• ROS Helpline: 01 738 3699

Cost: €300-€600 for annual tax return preparation
Benefit: Often save €1,000+ in additional deductions

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Start Saving Today

Don't leave thousands of euros on the table. With proper record-keeping and SmartRent.ie's automated expense tracking, claiming all your tax deductions is effortless.

Get started with SmartRent.ie:

• 14-day free trial (no credit card required)
• Automatic expense categorization
• Tax report generation
• Save €2,000-€6,000 per year

Start Your Free Trial →

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Disclaimer: This guide is for informational purposes only and does not constitute financial or tax advice. Tax laws change regularly. Always consult with a qualified accountant or tax advisor for your specific situation.

Last Updated: October 28, 2025