Tax Reduction Scheme
Aim of the Scheme
This scheme is intended for owners who lease their residence at affordable rents and are interested in selling the property to their tenants; as long as the tenants are eligible for the Housing Benefit. Both owners and tenants shall be exempt from paying tax on the first €200,000 if the lease has been ongoing for 10 years. Owners and tenants will be eligible for a 50% tax deduction if the lease has been ongoing for 3 years.
Owners and tenants shall submit a joint application. After verifying eligibility the Housing Authority will issue a certificate which is to be presented to the Notary. The Notary will confirm the authenticity of the certificate with the Housing Authority to preclude any risk of fraud.
100% - tax exemption if the property has been leased for 10 years.
50% - tax deduction if the property has been leased for 3 years.
€200,000 – maximum value on which exemption / deduction will apply. Tax at normal rates will be paid on the rest of the value.
85% of median rents is the definition of affordable rents; taken from leases registered with the Housing Authority.
€200k
Maximum home value exempt from tax
100%
Tax exemption if the property has been leased for 10 years
50%
Tax deduction if the property has been leased for 3 years