Ireland: Taxes and Costs

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Taxes are in the medium range

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	10.1%	11.5%	13.9%
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INDIVIDUAL TAXATION

Non-residents are taxed on their income from Irish sources. Married couples have the option to be taxed separately or jointly.

INCOME TAX

Non-residents are liable to pay taxes on their Irish sourced income. Taxable income is generally an aggregate of all kinds of income. The rates that apply to residents may not apply to non-residents, unless all of the taxpayer’s income is subject to Irish income tax. Allowances, deductions and credits available to residents are not available to non-residents unless certain conditions are met.

Rental Income Tax

Rental income is taxed at 20%, withheld by the tenant. The taxpayer has the option to file a return and claim relief for expenses such as maintenance, renovation, repairs, management fees and insurance costs.

CAPITAL GAINS TAX

Non-residents are liable to pay capital gains tax for gains realized from the sale of real estate property in Ireland. Taxable capital gains are generally computed as selling price less acquisition and improvement costs. Capital gains tax is levied at a flat rate of 20%.

Non-residents earning capital gains exceeding €500,000 from the sale of Irish property are liable to pay withholding tax at the rate of 15%, which is levied on the selling price/fair market value of the property. This tax is then credited against the non-resident’s capital gains tax liability.

CORPORATE TAXATION

INCOME TAX

Corporate income is taxed according to the category of income it falls under (called “schedules”) and the subcategory it is further classified under (called “cases”). Rental income falls under Schedule D, case V, which is taxed at a rate of 25%. Maintenance, repair, insurance costs and management fees are deductible from the rental income, before the tax is levied.

CAPITAL GAINS TAX

Corporate capital gains are taxable in Ireland. The taxable gain is generally calculated as selling price less acquisition and improvement costs. Capital gains are taxed at a rate of 20%.

PROPERTY TAXATION

In Ireland, no property tax is levied on residential property.

Ireland - more data and information

• Guide to buying houses and registering property sales in Ireland

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