Irish farmland leasing tax guide
Can I lease out farmland tax-free in Ireland?
Yes. Landowners may qualify for income tax relief when they lease farmland to a farmer under a qualifying long-term lease.
The short answer
Long-term farmland leases may qualify for income tax relief
Landowners can earn qualifying leasing income free from income tax up to the applicable annual limit when farmland is leased for at least five years and the land is used for farming.
The maximum relief increases with the length of the lease, reaching €40,000 a year for a qualifying lease of 15 years or more. The income must still be declared, and specific Revenue conditions apply.
Short-term conacre lettings do not qualify for this long-term leasing relief.
Key requirements
What conditions apply?
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The lease must be long term
The lease must be in writing or evidenced in writing and run for a definite term of at least five years.
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The land must be used for farming
The tenant must use the land to carry on a farming trade, such as normal farming, market gardening, horse breeding, cattle dealing or fruit growing.
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Short-term conacre is different
Short-term conacre arrangements do not meet the minimum five-year lease term required for this income tax relief.
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Additional ownership conditions may apply
For farmland purchased under a contract entered into on or after 1 January 2024, the land generally must be owned for at least seven years before this relief can be claimed.
Tax treatment depends on the full circumstances of the lease. See the Revenue guidance on leasing farmland or speak with a tax adviser before entering into an agreement.