Rental Income Tax: Deducting Expenses & RTB Registration

Rental Income and Tax in Ireland

If you rent out a property in Ireland, the rental profit (income minus allowable expenses) is subject to income tax, USC, and PRSI. You must declare rental income even if you are also in PAYE employment.

Updated for 2026 Revenue rates.

Do You Need to Register?

Yes. You must register your tenancy with the Residential Tenancies Board (RTB) within one month of the tenancy starting. Failure to register can result in penalties and may affect your ability to deduct certain expenses. RTB registration costs €90 per tenancy (annual fee).

Additionally, you must register for self-assessment with Revenue if your rental income (combined with other non-PAYE income) exceeds €5,000 per year.

Calculating Taxable Rental Profit

Your taxable profit is: Gross rent received − Allowable expenses. The profit is then added to your other income (employment, self-employment, etc.) and taxed at your marginal rate (20% or 40%), plus USC and PRSI.

Allowable Expenses

You can deduct the following expenses from your rental income:

• Mortgage interest — 100% of interest on loans used to purchase, improve, or repair the rental property (restrictions applied in prior years have been phased out)
• Repairs and maintenance — routine repairs, painting, plumbing, electrical work
• Insurance — landlord insurance, building insurance
• Management fees — property management agent fees, letting agent fees
• RTB registration fee
• Local Property Tax (LPT) — on the rental property
• Professional fees — accountant fees for preparing rental accounts, legal fees for lease agreements
• Utilities — if you pay for electricity, gas, internet, bin charges on behalf of the tenant
• Ground rent and service charges
• Advertising costs — for finding tenants

Non-Allowable Expenses

You cannot deduct:

• Capital costs of purchasing the property (these are capital acquisitions, not income expenses)
• Capital improvements that increase the value of the property (e.g. extension, new kitchen) — these may qualify for capital allowances instead
• Your own labour (you cannot charge a notional wage)
• Personal use portion — if you use the property personally for part of the year, expenses must be apportioned

Capital Allowances for Rental Properties

Certain capital expenditures qualify for wear-and-tear allowances (capital allowances):

• Furniture, fittings, and appliances — 12.5% per year over 8 years
• Energy efficiency improvements — accelerated allowances may be available

Pre-Trading Expenses

Expenses incurred in the 7 years before you started renting (e.g., advertising, legal fees) can be treated as incurred on the first day of trading and deducted against rental income.

Losses

If your allowable expenses exceed your rental income in a tax year, you can carry forward the loss to offset against future rental profits from the same property.

Filing Rental Income

Rental income is declared on Form 11 (self-assessment) or Form 12 (PAYE employees with small rental income). Use Revenue's online portal myAccount or ROS.