Landlord LPT

Is local property tax allowable against rental income

This is a common question from landlords. Is LPT an allowable deduction against rental income?LPT is a self-assessed tax charged on the market value of residential properties in the State. Liable persons must pay their LPT liabilities on an annual basis.


Unfortunately the answer is no local property tax is not an allowable deduction.

What expenses are not allowed?
You cannot deduct the following expenses when you are calculating your rental profit or loss:

pre-letting expenses, other than property fees before you first rented out the property. However certain pre-letting expenses on vacant residential property may be deductible.
post-letting expenses
capital expenses on property improvements unless allowed under an incentive scheme
expenses on premises rented out on an uneconomic basis, where it is not possible to make a profit from the rent received
expenses in between renting out the property in certain circumstances
interest from the time you buy the property up until it is first rented out
Local Property Tax (LPT)
any cost for your own labour when carrying out repairs to the property.




NPPR Charge

Its that time of year again. The NPPR (Non principal private residence charge) is due on or before the 30th of June 2011.

The 2011 charge is based upon the ownership and status of the property on the 31st March 2011.

What is the NPPR (Non Principal Private Residence) charge?

The NPPR charge is an annual charge of €200 introduced by the Local Government (Charges) Act 2009 in respect of all residential property not used as the owner’s sole or main residence.

What is a Non Principal Private Residence?

Essentially, a non principal private residence is any dwelling which is not used by its owner as his or her sole or main residence.

Does the charge apply to residential property outside of Ireland?

The charge only applies to properties situated in Ireland.

What types of properties are liable for the NPPR Charge?

The main types of residential properties that are liable for the charge are, private rented properties; vacant properties (except new but unsold residences, which have never been used as a dwelling and are part of a trading stock of a business) and holiday homes. What types of properties are NOT liable for the NPPR Charge? certain heritage buildings approved under section 482 of the Taxes Consolidation Act 1997, newly constructed but unsold buildings which have never been used as dwellings and that form part of the trading stock of a business, buildings let by the Government, housing authorities and the Health Service Executive, a building occupied under a shared ownership lease within the meaning of section 2 of the Housing (Miscellaneous Provisions) Act 1992, accommodation provided by a voluntary housing body, a building let under the Rental Accommodation Scheme, accommodation provided on behalf of the Health Service Executive a building in respect of which commercial rates are paid.

Is a building divided into flats or bedsits liable for the NPPR Charge?

The charge is payable in respect of each unit of accommodation. Where a building is divided into flats or bedsits, the charge applies to each flat or bedsit e.g. if the dwelling is divided into four bedsits a charge of €200 x 4 = €800 would apply.

Is a house let as one unit to a number of occupants liable for the NPPR charge?

Yes, the charge is €200 for the house.

I own a mobile home. Is this liable for the charge?

A mobile home is not liable for the non principal private residence charge.


Are there any exemptions from the NPPR Charge?

You are advised to check section 4 of the Act for detail.  However, the following abbreviated list should act as a guide:


1.    Principal Private Residences

2.    Where a person partly occupies a dwelling as his or her sole or main residence and avails of the Revenue Commissioners’ Rent-a-Room Scheme

3.    Discretionary trusts or corporate bodies that are accorded charitable status

4.    Where a person is moving house and, in the process, owns two houses for a relatively short period.

5.    Joint ownership of a property after a divorce or separation agreement where the second residence becomes the primary residence of one party.

6.    Where a person who owns a principal private residence vacates the dwelling in question because he or she is long-term incapacitated as a result of physical or mental illness

7.    Where a residence is occupied rent-free by a relative of the owner and the owner resides on the same property or within two kilometres of .the residence in question.

8.   Where a landlord and a Local Authority have a signed contract in place under the Rental Accommodation Scheme for a property, on the liability date i.e. 31st July 2009 and 31st March in 2010 and each subsequent year, the property is exempt from the NPPR charge.

Contact the relevant local authority if you are in any doubt about the liability of your property i.e. the County Council or City Council in which the property is located.

To pay visit
Rental Income