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General Letting Question

  • 04-02-2023 3:00pm
    #1
    Registered Users Posts: 871 ✭✭✭


    Hi there,

    Just a quick question around buy to let.

    If you buy an apartment for say 250k. And the rent is 2k a month. Mortgage 1k a month. How much extra tax would you pay out of the remaining 1k each month?



Comments

  • Registered Users Posts: 7,668 ✭✭✭Grumpypants


    You pay tax on the whole 2k. You can't deduct mortgage payments.

    So you would pay roughly 1k a month in tax depending on your other tax liabilities (PAYE etc.)

    So in reality you would prob hand over all the rent and then have to add another 100-400 euro from your pocket to pay the mortgage and cover upkeep.

    Post edited by Grumpypants on


  • Registered Users Posts: 89 ✭✭blarb


    You can deduct the mortgage interest though if you tenancy is registered with RTB. See full list of deductions here:

    https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

    You'll probably be taxed at about 50% of whatever is left after deductions if you have other income.



  • Registered Users Posts: 606 ✭✭✭J_1980


    Even after taxes still worth it.

    i have a 2bed2bath Apartment in D4. It’s a goldmine. Easy 2.5k per month.

    irish people don’t buy apartments in general, hence have a discount vs. houses and good yield. They prefer to wait for prices on 3bed semis in Blackrock to drop, so plenty of opportunity to milk these renthogs.



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