This week the Minister for Finance, Paschal Donohoe, has announced a new tax deduction for small-scale landlords who undertake retrofitting works while their tenant remains in situ.  The new tax scheme is aimed at incentivizing landlords to undertake retrofitting works in order to improve the energy efficiency of their properties.

The measure will offer a tax deduction of up to €10,000 per rented residential property against rental income, for certain retrofitting expenses, for a maximum of two rental properties.

The deduction has been designed to supplement the Sustainable Energy Authority Of Ireland's (SEAI's) home energy grant scheme and as such the expenses that qualify for deduction will be those for which the landlord has already received a home energy grant from the SEAI. 

Conditions In Relation To The Tax Deduction Include:

- The deduction and grant must relate to the same retrofitting works.

- Only retrofitting works carried out and certified by the SEAI in year 1 can be claimed against  rental income in year 2.

- The scheme will run for 3 years.

- The property must remain as a rental property for a period of two years after the work has been carried out.

- The landlord must also be tax compliant and registered with the Residential Tenancies Board.

More details on this measure are set to follow in the Finance Bill once it has been finalized.

For more information on tax deductions in relation to retrofitting of your rental properties talk to your DBASS adviser on ph. 01 849 88 00 or


By Sive Dowling

DBASS Chartered Accountants

For more information on any of the above schemes or discuss how DBASS can assist your business with any taxation related matters, please do not hesitate to contact us on <ph. 01 849 88 00> or