Housing tax credits and reliefs

Introduction

You can claim tax relief on some housing incomes and expenses and these are outlined below.

There is also a tax refund scheme, which is designed to help first-time buyers of newly built homes to get the required deposit. For more information, see the Help to Buy (HTB) incentive.

For information about Local Property Tax, see Exemptions from Local Property Tax.

Budget 2023

It was announced in Budget 2023 that a new Rent Tax Credit will be introduced. If you are paying for private rented accommodation, you can claim a tax credit of €500 a year for 2022 and subsequent years. This tax credit applies to each tenant rather than each tenancy. For rent you pay in 2022, you will be able to claim this credit early in 2023.

Rent-a-room relief

If you rent out a room or flat in your home, you are exempt from income tax on the amount that your tenant pays you for rent and other services, up to €14,000 in a tax year.

Rent-a-room relief applies only to residential tenancies, not to short-term guest arrangements. The relief can also apply to a self-contained unit (such as a basement flat) if it is part of your home or is directly attached to it.

You are not eligible for Rent-a-room relief if you are renting the room to your son or daughter.

Tax when providing short-term guest accommodation

If you have income from providing accommodation to occasional visitors for short periods, for example through an online accommodation booking site, this income is not considered to be rental income. This is because the visitors use the accommodation as guests rather than tenants. Revenue have published a guidance manual on how such income is treated for tax purposes (pdf).

Tax relief for landlords

You can deduct the interest on mortgages used to purchase, improve or repair rented residential property when working out your rental income for tax purposes.

You must show that you have registered all tenancies in the property with the Residential Tenancies Board (RTB). Interest can only be deducted during the period in which the property is let.

The amount of interest you can deduct on these mortgages has increased in recent years:

  • Before 2017, it was 75% of the interest
  • In 2017, it was 80% of the interest
  • In 2018, it was 85% of the interest
  • From January 2019, it is 100% of the interest

Interest is treated as accruing on a daily basis and the date the loan was taken out is not relevant.

Tax when transferring ownership

When ownership of a property is transferred, the financial gains are usually liable to tax but some exemptions and reliefs apply.

For instance, when you sell a property, any profit you make over the amount that you paid for it would usually be liable for Capital Gains Tax. There is however an exemption if the property is the main residence where you live. Read more about Capital Gains Tax .

If you get property as a gift or inheritance, you may have to pay Capital Acquisitions Tax. A number of reliefs and exemptions apply including if the transfer is between spouses or civil partners or, in certain circumstances, if you get a house that has been your main residence. Read more about Capital Acquisitions Tax.

You may also have to pay stamp duty when ownership of a property is transferred but there are some exemptions. Read more about stamp duty.

Where to apply

You can claim tax credits online.

Contact information for Revenue regional offices is available on the Revenue website.

Page edited: 15 November 2022