Renting A Home In Ireland? Know About This Tax Credit
As a renter in Ireland, meeting the rental market standards can be challenging, especially if you live in pricey areas like Dublin. The rents are constantly skyrocketing from the baseline year, 2012. However, the Irish government in 2022 introduced a new credit to offer some form of respite to renters in the country.
The new system for claiming rent tax credit allows renters a limit of up to €1,000. However, there are certain obligations and criteria to be met. Moreover, renters must create an operational account on the www.revenue.ie website to claim the credit. If you are eagerly looking for some relief from the constantly rising rents, here is everything you need to know about the rent tax credit.
What is the rent tax credit?
According to recent figures, over 400,000 Irish renters are entitled to the €500 rent tax credit they haven’t claimed. The credit is estimated to be 20% of the rent paid in a year and is usually capped at a maximum of €500. However, if you are a couple sharing a living space and are jointly considered for tax assessment, the rent tax credit will amount to €1,000.
Notably, in the Budget presented for 2024-25, the credit was increased to €750 if the renter is an individual, whereas, for a couple jointly considered for tax assessment, the credit now stands at €1,500. It is a welcome move for households trying to manage the consistently soaring rent.
Who is eligible to claim the credit?
The credit is available for:
• Your own principal private residence (PPR ) you have paid rent for.
• A second property that is treated as a home and is used for approved courses or work purposes.
• A residential property that is being used by your ward so they can participate in an approved course. The ward should be under the age of 23 when they start their first year of the course.
Things to know about claiming credit
In order to claim the credit for your tenancy, the rental property should be registered with the Residential Tenancies Board (RTB ). However, if you rent a room in a home that is being shared with the owner, the agreement is licensed and doesn’t have to be registered with the (RTB ).
If you are a student renting accommodation to attend an approved course, the rent payments made by the parents are also eligible for the Rent Tax Credit. It should be noted that if you are already getting support for accommodation (like the Housing Assistance Payment or Rent Supplement ), the credit will not be available for you to claim.
Under the Non-Resident Landlord Withholding Tax System (NLWT ), a collection agent can pay 20% of your rental payment directly to the Revenue. However, if you need professional assistance, consider contacting experts like Irish Tax Rebates for direct answers and assistance.
A much-needed relief from soaring rent
The rent tax credit is incredibly helpful for households in rental markets that are constantly rising. The credit can help renters from any city in the country to claim what’s rightfully theirs. If you are a new renter and are looking to take on the rising costs of living, credit can be incredibly helpful in stabilising your finances and, eventually, improving the quality of your life.
