A new relief is available for individual landlords of rented residential premises. The relief is known as Residential Premises Rental Income Relief (RPRIR).
The maximum amount of relief for each year is as follows:
- €600 in 2024
- €800 in 2025
- €1,000 in 2026
- and
- €1,000 in 2027.
The relief applies to Income Tax only. It will not reduce your liability to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).
Who can claim the relief?
The relief is available to individual landlords of rented residential premises. It is not available to companies, trusts or estates.
If you own a share in a rented residential premises you are eligible to claim the relief. In these circumstances the relief will be apportioned based on the percentage of rent that you are entitled to.
If you also own 100% of another qualifying premises, the relief will be available to you based on this premises and will not be restricted.
You must meet all the qualifying conditions before claiming the relief.
Qualifying conditions for claiming the relief
To claim the relief, on 31 December in the year in respect of which relief is being claimed, you must:
- own the qualifying residential premises
- hold a valid Tax Clearance Certificate
- and
- be Local Property Tax (LPT) compliant.
The qualifying premises must, on that date, be:
- rented under a tenancy registered with the Residential Tenancies Board (RTB)
- rented to a tenant and be a formerly rent controlled premises not required to be RTB registered
- rented to a local authority
- or
- actively marketed for rent.
- Note
- You cannot claim the relief if any of the qualifying premises are rented to a connected person such as a family member or relative.
Clawback of the relief
The relief will be clawed back in the following circumstances:
- Where the premises is disposed of within 4 years of the first year in which relief is claimed. This includes where the property is sold or gifted to another person. If the ownership of the property is transferred to another person this will trigger a clawback. The death of a landlord will not trigger a clawback of the relief.
- Where the premises is not rented to a tenant and is not being actively marketed for rent.
- Where the use of the premises has changed from residential letting, for example, renting the premises as a holiday home.
- Where the premises is let to a connected person.
Courtesy of : https://revenue.ie