Understanding Landlord Returns in Ireland
Being a landlord in Ireland involves understanding multiple factors that affect your bottom line: gross rental yield, mortgage interest costs, property tax, management fees, maintenance, vacancy rates, and income tax on rental profits. Our comprehensive calculator accounts for all these variables.
Key Metrics for Irish Landlords
The most important metrics for Irish buy-to-let investors include gross yield (annual rent ÷ property price), net yield (after all costs and tax), and cash flow (monthly profit after mortgage and expenses). Use our Rental Yield Calculator for a quick yield estimate.
Tax Considerations for 2026
From 2024 onwards, 100% of mortgage interest is deductible against rental income for all landlords. This significantly improves the tax position compared to previous years when only 75% was deductible. However, landlords must still account for income tax, USC (up to 8%), and PRSI (4%).
Frequently Asked Questions
Is buy-to-let still worth it in Ireland in 2026?
With gross yields of 5-8% in most counties and persistent rental demand, buy-to-let can generate positive returns. However, income tax on rental profits (up to 52% effective), compliance costs, and Rent Pressure Zone restrictions make net yields significantly lower than gross.
How is rental income taxed in Ireland?
Rental income is taxed as income (20% or 40%), plus USC (up to 8%) and PRSI (4%). A higher-rate taxpayer can pay up to 52% effective tax. Allowable deductions include 100% of mortgage interest (from 2024), management fees, repairs, insurance, and PRTB fees.
What are the landlord obligations under Irish law?
Irish landlords must register each tenancy with the RTB (Residential Tenancies Board) annually, provide a rent book, maintain the property to minimum standards, and give proper notice before ending a tenancy. Rent increases are restricted in Rent Pressure Zones (RPZs).