Rental yield and income tax

Sources

A 20% deduction from gross rent is the statutory income-tax deduction for rental income, as set out in PwC's Tax Facts & Figures 2026, which tracks the Income Tax Law. Interest on a loan used to buy the building, and wear and tear if it is not already exhausted, can be extra. Do not put the 20% in the extra box. From 1 January 2026 the income-tax bands for an individual are nil on the first €22,000, 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above that. The Tax Department's older individuals page still shows the pre-2026 bands; the 2026 reform pages are the ones used here. Special Defence Contribution on rent was abolished from the 2026 tax year for domiciled residents as well. It is shown as zero. GHS on rental income is 2.65% of the gross rent on the Tax Department's rental page. An annual ceiling can apply under the GHS law and is not modelled, because this page does not reproduce a 2026 ceiling from that law. Short-stay income can be treated as business income on conditions in a 2023 Tax Department circular. That route is not modelled.