Tax relief on rent has been phased out over an 8-year period from 2010. If you were not renting prior to December 2010 and now enter into a lease agreement, you will not qualify for tax relief of rent
If you lived in private rented accommodation in Ireland prior to December 2010 and paid income tax, it may be possible to claim tax relief on part of the rent you paid. The relief is available at the standard rate of 20%.
In completing Form Rent 1 you will require details such as the landlord's name, address and PPS number. If you do not have these details, you may still submit the form with as much detail as possible.
There are upper limits to the amount of relief that can be claimed depending on your personal circumstances.
Does your landlord live abroad?
If you live in private rented accommodation and pay your rent directly into your landlord's bank account and your landlord lives abroad, you are obliged under law to withhold 20% of the rent. You are then required to pay the withheld rent to Revenue Commissioners to settle the landlord's tax liability. You will need to make an annual return to the Revenue Commissioners. If, however, your landlord is not resident in the state, but you pay your rent to an agent, there is no requirement to make the deduction.
Rent A Room
Where a person rents out a room(s) in their principal place of residence, following Budget 2017, they can receive up to €14,000 per annum tax free although this has to be declared through annual tax returns. See www.revenue.ie for more information. It is important to note that where you share with the owner this is a licence arrangement and the normal landlord and tenant laws do not apply. For more on licensees, click here
Where a tenant is renting a property, they are not subject to stamp duty where the annual rent is under €40,000 (€3,333.33pm) and the period is under 35 years or for an indefinite period. Where applicable stamp duty can be paid through revenue online. For more information click here
Local Property Tax
If you are a tenant and you have received correspondence which suggests that you are liable for the local property tax on the property you are renting, you should contact Revenue immediately. It is important to inform Revenue why you are not liable for this payment, otherwise you will remain on the system and could be pursued for payment at a future date. In this instance it is recommended that such correspondence with Revenue is evidenced e.g. letter/ email correspondence kept
What to do
· Ensure you have a rent book or obtain receipts for all rent paid.
· Complete form Rent 1 from the Revenue Commissioners to claim tax relief.
· Where your landlord lives abroad complete Form 185, available from the Revenue Commissioners.