1. What is Net Rental Income?

Net Rental Income is the amount left after deducting all allowable expenses from your gross rental income. This is the amount that's subject to taxation in Ireland.

2. How the Calculation Works

The calculator uses the following formula:

Where:

• Gross Rental Income — Total rental income before any deductions
• Repairs — Cost of repairs to maintain the property
• Insurance — Property insurance premiums
• Interest — Mortgage interest payments
• Management Fees — Fees paid to property management companies
• Wear and Tear — Allowance for furniture and equipment depreciation

3. Allowable Expenses in Ireland

Details: In Ireland, landlords can deduct certain expenses from their rental income before calculating tax. These include mortgage interest (up to 75%), maintenance costs, property taxes, insurance, and management fees.

4. Using the Calculator

Tips: Enter all amounts in EUR. Only include expenses that are tax-deductible according to Irish revenue rules. Keep receipts and documentation for all claimed expenses.

5. Frequently Asked Questions (FAQ)

Q1: What expenses are not deductible?
A: Capital improvements, personal use portions, and expenses not wholly for rental purposes cannot be deducted.

Q2: How is wear and tear calculated?
A: Typically 12.5% of the cost of furniture and appliances over 8 years (straight-line method).

Q3: Can I deduct mortgage principal payments?
A: No, only the interest portion of mortgage payments is deductible.

Q4: Are utility bills deductible?
A: Only if they're included in the rent and paid by the landlord.

Q5: What records should I keep?
A: Maintain all receipts, invoices, bank statements, and rental agreements for at least 6 years.