Guide to Property Taxes in Ireland
Tax Rate on Rental Income* |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 20% | 28.3% | 34.2% |
| *Single and widowed person: no dependent children | |||
Nonresidents are taxed on their income from Irish sources. Married couples may elect to be taxed separately or jointly. The tax year in Ireland is aligned with the calendar year.
Income Tax
Nonresidents are required to pay taxes on their income sourced from Ireland. Typically, taxable income includes all forms of income. Nonresidents may not be eligible for the same tax rates as residents unless their entire income is subject to Irish income tax. Additionally, tax allowances, deductions, and credits available to residents are not generally accessible to nonresidents, unless specific conditions are fulfilled.
Personal Income Tax Rates for 2024
| FILING STATUS | TAXABLE INCOME (EUR) | TAX RATE |
| Single and widowed person: no dependent children | Up to 42,000 | 20% |
| Over 42,000 | 40% | |
| Married couple: one income | Up to 51,000 | 20% |
| Over 51,000 | 40% | |
| Married couple: two incomes | Up to 84,000 | 20% |
| Over 84,000 | 40% |
Rental Income
Rental income is taxed at 20% up to €40,000. Income over €40,000 is taxed at 40%. The taxpayer has the option to file a return and claim relief for income-generating expenses. Allowable deductions include ground rent, rates, maintenance costs, general repairs, insurance, management fees, service charges, advertising, accounting fees, depreciation (wear and tear), building expenditures, and interest.
Stamp Duty on Property Leases
Stamp duty rates on property leases range from 1% to 12%, levied on the average annual rent reserved by lease. The applicable rate depends on the length of the lease.
| LEASE PERIOD | RATE |
| Up to 35 years or indefinite | 1% of average annual rent |
| 36 years to 100 years | 6% of average annual rent |
| Over 100 years | 12% of average annual rent |
Stamp Duty on Sales of Residential Properties
Stamp duties are levied on sales of residential properties at progressive rates.
Stamp Duty on Sales of Residential Properties
| TAX BASE (€) | TAX RATE |
| Up to 1 million | 1% |
| Over 1 million | 2% |
Capital Gains Tax
Nonresidents are liable to pay capital gains tax for gains realized from the sale of real estate property in Ireland. Capital gains tax is imposed at a flat rate of 33%.
| CAPITAL GAINS (€) | TAX RATE |
| Any amount | 33% |
Nonresidents 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 or fair market value of the property. This tax is then credited against the nonresident’s capital gains tax liability.
Corporate Taxation
Income Tax
Income earned by companies is subject to corporate income tax at varying rates depending on income classification: 12.5% on trading income and 25% on non-trading income.
Corporate Income Tax Rates
| INCOME TYPE | TAX RATE |
| Trading Income | 12.5% |
| Non-Trading Income | 25% |
Buying and Selling Costs & Taxes
| COST TYPE | COSTS |
| Property Transfer Tax | 1.00% - 2.00% |
| Agent Fee Buyer | - |
| Agent Fee Seller | 1.00% - 2.50% |
| Legal | 1.00 - 1.50% (+23% VAT) |
| Notary | 0.10% - 0.20% |
| Roundtrip Cost | 3.10% - 6.20% |
| Source: Global Property Guide, PWC | |
Property Taxation
Local Property Tax (LPT)
Local property tax is levied at different rates depending on the value of the property. For properties that are valued at least €1,000,000, local property tax is levied at a flat rate of 0.18% on the first €1,000,000, and at a flat rate of 0.25% on the property value exceeding €1,000,000.
Local Property Tax for Properties Worth at Least €1,000,000
| PROPERTY VALUE (€) | RATE |
| Up to 1,000,000 | 0.18% |
| Over 1,000,000 | 0.25% on all value over 1,000,000 |
For properties that are valued between €50,000 and €1,000,000, a different local property tax rate system applies.