Understanding Rental Yields in Ireland
Rental yield is the return you can expect from an investment property, expressed as a percentage of the property's value. It's the most important metric for buy-to-let investors in Ireland.
Gross vs Net Yield
Gross yield is your annual rental income divided by the purchase price. Net yield deducts all running costs including management fees, insurance, maintenance, and vacancy allowance. Net yield is the true measure of your investment's performance.
Current Irish Market
With persistent rental demand and rising rents, Irish property continues to offer competitive yields. Dublin typically yields 4-6%, while regional cities and towns can offer 6-9%. Use our Landlord ROI Calculator for a full tax-adjusted analysis.
Frequently Asked Questions
What is a good rental yield in Ireland?
A gross rental yield of 5-7% is generally considered strong in Ireland. Dublin averages 5-6%, while cities like Limerick, Waterford, and Galway can offer 6-9%. Net yield is lower after mortgage, management fees, and tax.
How do I calculate rental yield on an Irish property?
Gross yield = (Annual rent ÷ Purchase price) × 100. For example: €1,500/month rent on a €300,000 property = €18,000 ÷ €300,000 × 100 = 6.0% gross yield. Deduct costs to arrive at net yield.
Is rental income taxed in Ireland?
Yes. Rental income is subject to income tax (20% or 40% depending on total income), USC, and PRSI. Allowable deductions include 100% of mortgage interest, management fees, insurance, repairs, and PRTB registration.