Property owner groups are pushing for a new 25 percent tax rate for landlords to discourage them from selling and exiting the market.
Currently, landlords can pay taxes of over 50 percent on their rental income and the government intends to reduce this in the upcoming budget.
The Irish Property Owners Association (IPOA) and Institute of Property Auctioneers and Valuers (IPAV) will tomorrow ask TDs and Senators on the Oireachtas Housing Committee to support a new 25 percent tax rate.
This will encourage landlords to stay in the rental market and “support new investment,” IPOA Chair Mary Conway will tell politicians.
“We propose to fund this by introducing a 25 percent tax rate for all mutual funds/REITs involved in residential rentals
market, which would bring a much-needed balance to the treatment of landlords,” she will say.
“It is totally unfair that two different investors, both offering identical products and services, can experience such different tax treatment.
“The individual investor is taxed at a marginal rate of up to 55 percent, while the private equity fund/REIT pays 0 percent tax on rental gains once it exits the market within a specified period.”
Private non-developer landlords provide 94 percent of rental housing in the state, the committee tells the committee, with 70 percent of those landlords owning five properties or fewer.
Ms Conway will also say that inheritance tax plays a role in encouraging landlords to leave the rental market because of their age.
“75 percent are over 50 years old and 48 percent are over 60 years old. This is important to note as tax issues related to inheritance contribute to landlords exiting the market.”
TDs and Senators will also learn of the “material issues” surrounding the Residential Tenancies Board’s (RTB) portal, which landlords are required to use each year to register their properties.
IPAV Chief Executive Pat Davitt will say that when the portal launched, “a large proportion” of new registrations were unsuccessful and a system that was in place before “disappeared”. According to Mr. Davitt, this causes problems for real estate agents.
“I would say with certainty that even someone with a degree in technology could not master it,” the committee is told.
“The law needs to be changed immediately to change the renewal date until a working system is in place.”
Meanwhile, homeless charity Threshold told the committee it deals with an average of 492 tenants who have received eviction notices each month.
Nearly 60 percent of that is due to landlord sales, a “dramatic increase” from pre-pandemic levels.
https://www.independent.ie/news/landlords-want-tax-on-rental-income-slashed-from-over-50pc-to-just-25pc-42001801.html Landlords want taxes on rental income to be reduced from over 50 percent to just 25 percent