TAX RELIEF FOR TENANTS

Rules | Rates | How to apply | Where to apply

INFORMATION
If you live in private rented accommodation in Ireland and pay income tax, you may be eligible for tax relief on part of your rent.

RULES
In order to claim tax relief, you must be paying rent for private rented accommodation which is used as your sole or main residence. This includes accommodation such as a bedsit, flat, apartment or house.

You cannot claim tax relief for rent paid as follows:

If your landlord is resident in Ireland, a receipt for rent you have paid must be provided if and when it is requested by Revenue. This rule applies regardless of whether you pay your rent directly to the landlord or to an agent on behalf of the landlord. Each receipt must show the following:

Landlords that live outside Ireland
If your landlord lives outside Ireland and you pay rent directly to them or to their bank account located in Ireland or abroad, you must deduct tax at the standard rate (20%) from the gross amount which you pay.

EXAMPLE
My landlord lives in Germany and I pay them gross rent per month of 500 euro. (500 euro x 20% = 100 euro). I now deduct 100 euro from the gross rent I pay (500 euro - 100 euro = 400 euro). My rent therefore is 400 euro per month.
If you are a PAYE employee and are paying rent to a landlord living outside Ireland, you account for the tax you deduct by applying for a tax allowance and completing Form Rent 1 (see how to apply). If you pay tax by self-assessment, you account for the tax you deduct in your notice of self-assessment which you send to Revenue. Failing to deduct tax from rent you pay to a landlord living outside Ireland will mean that you (and not the landlord) will be liable for any tax which should have been deducted.

RATES
Tax relief at the standard rate of 20% on private rented accommodation is available from 1st January-31st December 2005 as follows:

Age Single Tax Allowance Married/Widowed Tax Allowance Aged under 55 years (max. relief) 1,500 euro 3,000 euro Aged over 55 years (max. relief) 3,000 euro 6,000 euro

To calculate what this is worth to you each year after tax, you multiply the tax allowance amounts above by 20%. So for people under 55 this equates to a tax credit of 300 euro per annum for single persons and 600 euro per annum for widowed persons and married couples. For those over 55 years, this equates to a tax credit of 600 euro per annum for a single person and 1,200 euro for widowed and married persons.

HOW TO APPLY

To claim rent relief, simply complete Form Rent 1 (pdf format) and send to your tax office. (Copies of the form are also available from your local tax office). If you have any difficulty completing the form or supplying any of the information requested, staff in your tax office will be happy to help you.

WHERE TO APPLY
Contact information for tax offices throughout Ireland is available here and at the front of all telephone directories.