Sell or keep my rental property? (Ireland)

How it is worked out

• Keep. Rent grows by your guess, but by no more than 2% a year, or inflation if lower, under the national rent control that replaced Rent Pressure Zones on 1 March 2026 (RTB, read 4 November 2026). Deductible costs, the €40 RTB fee, mortgage interest (only while the tenancy is RTB-registered) and 12.5% of furniture and appliances for 8 years come off before tax; LPT and capital repayments do not (Revenue, read 4 November 2026).
• Tax on the rent is the same as the landlord tax calculator: income tax at your marginal rate on top of your salary (Budget 2027 bands), USC, PRSI on rental profit over €5,000 if you are under 66, less the landlord relief in 2027 (it ends after 2027 as the law stands). Year 1 is 2027; its bands stay for later years, and PRSI follows the roadmap: 4.5% from October 2027, 4.7% from October 2028.
• Cash left each year after the mortgage and tax is saved at your deposit rate after 33% DIRT. A shortfall is money you put in.
• Keep, if sold in a later year: the grown value less the agent's fee and other selling costs, the mortgage still owed, CGT and any landlord relief paid back. That is the "wealth after tax" for each year.
• Sell now: CGT is 31% for sales on or after 7 October 2026 (33% before) on the price less selling and buying costs and improvements, less losses and your €1,270 exemption (each owner has one). Costs paid before 2003 are indexed with Revenue's multipliers (how to calculate CGT, multiplier table, read 4 November 2026). Landlord relief claimed within 4 years of the first year you claimed it is paid back (Revenue, read 4 November 2026).
• The proceeds are invested as in Where should my money go?: State Savings at the NTMA rate for the longest bond that fits, a deposit after DIRT, an ETF with exit tax at 35% and a deemed disposal every 8 years, a pension (relief at your marginal rate, within 15–40% of earnings up to €115,000 by age, Revenue, read 4 November 2026; valued as if drawn, 25% tax-free and the rest at 20%), or paying down your home mortgage (a tax-free return at its rate).
• Income in 2027 is what each path pays you in the first year: for keeping, the rent left after costs, mortgage payments and tax; for selling, the interest and growth the mix earns after tax (a pension pays nothing until you retire).

Not included: a sale part-way through a year, Rent-a-Room relief, companies, non-resident landlords, principal private residence relief for a home you once lived in, and stamp duty for a buyer. Salary stays flat. General information, not tax or financial advice. DecisionsCalc.

Frequently asked questions

When is CGT due if I sell my rental property?
For a sale between 1 January and 30 November you pay the CGT by 15 December of the same year; for a December sale, by 31 January of the next year. You file the CGT return (on Form 11 or Form 12) by 31 October of the year after the sale. The rate is 31% on gains from disposals on or after 7 October 2026 (33% before), on the gain after selling and buying costs, improvements and your €1,270 annual exemption. The date that counts is the contract date, not the closing date.

Can I sell with the tenant still living there?
Yes. The tenancy carries on and the buyer becomes the landlord. For tenancies that started on or after 1 March 2026, a landlord with 1 to 3 tenancies can end the tenancy to sell during the 6-year cycle only to avoid undue financial or other hardship, and can end it to sell at the end of the cycle; a landlord with 4 or more tenancies cannot end it to sell. For tenancies that started before 1 March 2026, selling is still one of the grounds to end the tenancy (RTB). A buyer may pay less for a let property: use the tenant-in-situ discount field to see what that does.

What should I invest in after selling a rental property?
It depends on when you need the money and how much risk you can take; this is general information, not advice. The calculator compares the main after-tax homes for the proceeds: State Savings (tax-free, State-guaranteed), a deposit (interest taxed at 33% DIRT), an Irish or EU ETF (exit tax 35% from 2027, with a deemed disposal every 8 years), a pension contribution (relief at your marginal rate, within the age limits on earnings up to €115,000), and paying down your own mortgage (a sure, tax-free return at its rate).

Can I sell to my tenant or to the council?
You can sell to anyone; the CGT is worked out the same way. Councils buy some rented homes under the Local Authority Tenant in Situ scheme, for tenants getting HAP or RAS who have been given a valid notice of termination and are at risk of homelessness. The Housing Agency’s Cost Rental Tenant in Situ scheme buys homes from landlords who are selling so tenants not on HAP or RAS can stay (income limits apply: €66,000 in Dublin, €59,000 elsewhere). A tenant can also buy with the First Home Scheme or a Local Authority Home Loan. Ask your local authority what applies.

Do I get the landlord tax relief back if I sell?
The Residential Premises Rental Income Relief (up to €1,000 a year in 2026 and 2027) is clawed back if you stop being the landlord, including by selling or gifting the property, within 4 years of the first year you claimed it. Revenue’s example: relief claimed for 2024, 2025 and 2026 and a sale in 2027 means all of it is paid back. The calculator adds the clawback to whichever path triggers it.

I bought before 2003. Is there indexation relief?
Yes. The cost (and any improvements) paid before 2003 is multiplied by Revenue’s factor for the tax year you paid it, which raises your base cost: for example ×1.212 for 1998/99 and ×1.049 for 2002. Indexation cannot turn a real gain into a loss or make a loss bigger. Enter the purchase date and the calculator applies it.

Is Local Property Tax deductible against rent?
No. Revenue lists LPT among the expenses you cannot deduct, with capital repayments and your own labour. Insurance, repairs, management and letting fees, service charges, the €40 RTB fee, mortgage interest (while the tenancy is registered) and 12.5% a year of furniture and appliances are deductible.

Tenancy and scheme rules: RTB, rental law changes from 1 March 2026; Citizens Information, Cost Rental Tenant in Situ Scheme; CGT dates: Revenue. Read 4 November 2026.

Related

• Landlord tax calculator: this year's tax on your rent.
• Capital gains tax calculator: CGT on any sale, and the payment dates.
• Where should my money go?: State Savings, deposits, ETFs and pensions after tax.
• Irish ETF exit tax tracker: if the proceeds go into ETFs.