Guide to Property Taxes in Ireland

Non-resident individuals are generally subject to Irish tax on Irish-source income, including rental income derived from real estate situated in Ireland. The Irish tax year follows the calendar year, from 1 January to 31 December.

Married couples and civil partners may be taxed under separate assessment or, where the relevant conditions are satisfied, joint assessment.

Income Tax

Ireland applies two principal individual income tax rates: 20% and 40%. For 2026, the applicable standard-rate bands are:

Personal Income Tax Rates for 2026

*The increased band for a two-income married couple is subject to the statutory limits applicable to the second income.

Non-residents may be entitled to Irish personal tax credits and allowances in full or in part depending on their residence, nationality and the proportion of their worldwide income that is taxable in Ireland.

Rental Income Tax

Rental income from Irish property is taxable in Ireland even where the property owner is non-resident.

Tax is imposed on net rental profit rather than gross rental receipts. Qualifying expenses incurred in connection with the rental property may generally be deducted when determining taxable rental income.

Allowable expenses can include:

• property management and letting fees;

• insurance;

• repairs and maintenance;

• certain local authority rates and service costs;

• qualifying accountancy and legal expenses;

• Residential Tenancies Board registration costs;

• qualifying mortgage interest; and

• capital allowances on qualifying furniture and fittings.

For non-resident landlords, Ireland also operates the Non-Resident Landlord Withholding Tax (NLWT) system. Where the system applies, 20% of gross rent is withheld and remitted to Revenue by the tenant or collection agent.

For comparison purposes, assuming deductible rental expenses equal to 30% of gross rent, estimated annual Income Tax and USC amount to approximately €2,520 on €18,000 of gross rent, €12,345 on €72,000, and €34,415 on €144,000, corresponding to effective tax burdens of approximately 14.0%, 17.1%, and 23.9% of gross rental income, respectively. Actual tax liability may vary depending on deductible expenses, available tax credits and reliefs, and the taxpayer's other Irish-source income.

Capital Gains Tax

Non-resident individuals are generally subject to Irish Capital Gains Tax (CGT) on gains arising from the disposal of Irish land and buildings.

The standard CGT rate is 33%.

The taxable capital gain is broadly determined by deducting the allowable acquisition cost, qualifying enhancement expenditure and eligible acquisition and disposal expenses from the sale proceeds.

A separate withholding mechanism may apply when Irish property is sold. Where the relevant consideration exceeds the statutory threshold, the purchaser may be required to withhold 15% of the purchase price unless the seller provides the appropriate CGT clearance certificate.

For a house or apartment, the current clearance threshold is generally €1 million. For certain other assets covered by the legislation, the threshold is €500,000.

The 15% withholding is not an additional capital gains tax. It is a payment on account that can be credited or reclaimed against the seller's actual Irish CGT liability.

Corporate 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

For a company holding Irish real estate as an investment, rental income is generally regarded as non-trading income and is therefore subject to corporation tax at 25%, rather than the 12.5% trading rate.

Qualifying expenses incurred in generating rental income may generally be deducted when determining taxable rental profits.

Buying and Selling Costs & Taxes

Property Taxation

Local Property Tax (LPT)

Ireland imposes an annual Local Property Tax (LPT) on residential properties. For the 2026–2030 valuation period, the tax is based on the property's market value as of 1 November 2025.

For residential properties valued at up to €2.1 million, properties are assigned to one of 20 valuation bands, with a fixed basic LPT amount applying to each band. The actual percentage based tax from the property value is ~0.1%.

Stamp Duty on Residential Property

Purchases of residential property in Ireland are subject to Stamp Duty at progressive rates. A rate of 1% applies to the portion of the purchase price up to €1 million, increasing to 2% on the portion between €1 million and €1.5 million. Any portion of the purchase price exceeding €1.5 million is subject to a 6% rate.

As the rates are applied progressively, the higher rates apply only to the portion of the property's value falling within the relevant band, rather than to the entire purchase price.