The lease must be in writing and for farming. You can't lease to a close relative, and you get one reduction however many leases you have.
Quick facts
- 5 to 7 years
- €18,000 a year
- 7 to 10 years
- €22,500
- 10 to 15 years
- €30,000
- 15+ years
- €40,000
- Close relatives
- Not allowed
- Land bought from 2024
- Own it 7 years first
How much is tax-free
The yearly maximum depends on the lease term: "5 years or more but less than 7 years €18,000 7 years or more but less than 10 years €22,500 10 years or more but less than 15 years €30,000 15 years or more €40,000".
"You will only qualify for one reduction regardless of the number of qualifying leases you may have." "Your farm land must be in Ireland and the tax relief cannot operate to create a loss."
What counts as a qualifying lease
It must be "in writing or evidenced in writing for a definite term of five years or more for the purpose of working the land with the aim of taking produce from the land." Normal farming, market gardening and horse breeding all count.
Who can lease to whom
"Only lessors who are individuals can qualify for the relief." "You cannot lease your land to a close relative." "The lessee cannot be connected to the lessor." A company can be the lessee if it farms the land.
"A 7 year holding requirement applies to land purchased under a contract entered into on, or after, 1 January 2024." Declare the rent on Form 11 through ROS.
Common questions
How much farm lease income is tax-free?
Up to €18,000 a year on a 5 to 7-year lease, €22,500 on 7 to 10 years, €30,000 on 10 to 15 years and €40,000 on 15 years or more.
Can I lease farmland to my son and get the relief?
No. You cannot lease to a close relative, and the lessee can't be connected to you.
How long must a farm lease be for tax relief?
At least 5 years, in writing, for farming.
Can I get the relief on land I just bought?
Land bought under a contract from 1 January 2024 must be owned for at least 7 years first.