Expanded tax benefits for property owners offering affordable rentals

The Renovate-Rent scheme is set to offer even more benefits for property owners willing to provide affordable housing, following recent updates to the proposed legislation. These changes introduce improved tax incentives to encourage more participation in the program.

One key update allows property owners who rent their units at affordable rates—without receiving additional subsidies—to claim capital allowances against other income sources. Additionally, rental income from properties leased under the scheme will be exempt from income tax and special defence contributions for the duration of the lease.

Further incentives include an exemption from the standard 3% special defence contribution on rental income, as well as increased capital allowances for property owners. Specifically, deductions for buildings will rise from 3% to 5%, while allowances for machinery and equipment will increase from 10% to 15%.

The scheme aims to make housing more accessible to eligible individuals and families who meet specific income criteria. For example, single individuals earning up to €25,000 annually and families with multiple members within designated income brackets can benefit from affordable rental options.

These tax incentives are planned to be in effect from 2024 to 2027, supporting both property owners and tenants by promoting more affordable housing solutions.