Retrofitting a rental: the €10,000 deduction for landlords

Landlords can deduct up to €10,000 a home for grant-aided energy upgrades to 2028, on up to three homes from 2026. Claim it in the year of the work.

Retrofitting Rental Properties Relief lets landlords deduct part of the cost of energy upgrades from their rental income. It comes on top of the grant from the Sustainable Energy Authority of Ireland (SEAI). Normally improvements aren't deductible against rent at all, so this is a real exception. It covers work carried out from 1 January 2023 to 31 December 2028.

How much

The deduction is the lesser of €10,000 and the cost of the qualifying work less the SEAI grant. Revenue's example: a €20,000 retrofit with a €13,000 grant gives a €7,000 deduction. You can claim it on up to two homes for 2023 to 2025, and up to three for 2026 to 2028 (Finance Act 2025).

Because it comes off your rental income, it reduces income tax, USC and PRSI. Joint owners claim in line with their share of the rent.

What it's worth

A landlord on a €60,000 salary with €18,000 a year of rent claims the €7,000 deduction in 2026.

The conditions

• the work must qualify for, and you must have received, an SEAI home energy grant
• the home must be let under a tenancy registered with the Residential Tenancies Board (RTB). Or it must be a former rent-controlled letting, or be actively marketed for rent
• you must be up to date with Local Property Tax and hold a valid tax clearance certificate
• the contractor must be registered for VAT, and you'll need their VAT number for the return

Which year to claim in

For work done in 2023, 2024 and 2025, the deduction is claimed the year after the work. From 2026 it is claimed in the same year as the work, so on a 2026 return you can claim both 2025 and 2026 work. Revenue sets this out in its Tax and Duty Manual 04-08-20; its guidance page still describes the old timing.

Clawback

The deduction is clawed back in some cases within two years of the end of the year the work was done. They are selling or transferring the home, no longer letting it as a home, or breaking your obligations under the Residential Tenancies Act.

On the return

Claim it on Form 11 Panel C, line 208. Give the date of the work, the property's Local Property Tax ID, the contractor's VAT number, the cost and the grant.

Work it out

• Landlord tax on rental income →

Sources

• Revenue: Irish rental income: what expenses are allowed? (checked 25/10/2026)
• Revenue: RPRIR qualifying conditions (RTB, tax clearance, LPT, not let to a connected person) (checked 16/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.