Buying an investment property comes with a different tax picture than buying your own home. This is a general summary only — always get independent tax advice for your specific situation.
Stamp duty
Stamp duty is payable on the purchase of investment properties in Ireland, the same as any other property purchase. Use our stamp duty calculator to estimate your liability.
Capital gains tax
Irish residents are exempt from Capital Gains Tax (CGT) on the disposal of their principal private residence — but that exemption doesn't extend to investment properties. Disposing of an investment property generally attracts CGT at 20% (development land can attract a higher rate).
Rental income tax
Rental income is taxable at the appropriate rate. The good news is that a number of costs are allowable as deductions when calculating your taxable rental income, including:
- Mortgage interest on the loan used to purchase the property
- Management fees
- Insurance
- Other genuine operating expenses associated with the rental
Tax on rental income is generally payable on a current-year basis in Ireland, usually by 31 October each year.
The bottom line
Investment property tax is more involved than tax on your own home, and the rules can shift over time. It's always worth sitting down with an independent tax adviser before you buy, so there are no surprises down the line.