The net profit obtained after subtracting the costs from rental income may be reduced by 50% where the property is used as the principal home of the tenant.
The deduction may be increased to 100% where the tenant is between the ages of 18 and 35 and has an income over €7,236. Where there is more than one tenant, their income is added proportionately. If the reduction of 100% would result in a negative(less than 0) outcome, then only a 50% reduction may be applied.
It is required that the tenant facilitate a number of personal details to the landlord so that these may be submitted in support of the claim for this deduction against income tax.
State Fiscal Benefits for Tenants
Where tenants are earning less that €24,000 they may make a deduction for income tax purposes of 10.05% of the rent paid in that tax year. The maximum taxable base upon which this deduction applies is €9,015 for those earning less than €12,000 and reduces according to a sliding scale up to €24,000.
Regional Fiscal Benefits
There are a number of tax benefits to both owning and renting properties that are available at a regional level. More information can be found on these benefits by viewing the section on ‘Property Law By Region’ on the lefts side of this page .