Leasing farm land

You may claim Income Tax relief on certain income that you earn from the long-term leasing of your farm land. Your farm land must be in Ireland and the tax relief cannot operate to create a loss. You cannot lease your land to a close relative.

You should use the Revenue Online Service (ROS) to declare this income on your annual Income Tax Return (Form 11).

Qualifying lease

For your lease to qualify, 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, for example:
    • normal farming
    • market gardening
    • horse breeding
    • cattle dealing
    • fruit growing.

Qualifying lessor

If you lease land to another person you are known as a lessor. Only lessors who are individuals can qualify for the relief.

Qualifying lessee

A lessee is the person who leases the land from you.

The lessee cannot be connected to the lessor. If the lessee is a company, it cannot be under the control of you or any person connected to you.

The lessee must use the leased land for the purpose of carrying on a farming trade.

How the relief is given

The profit from the letting of the farm land is assessed by Revenue as rental income. The relief is given as a reduction (up to a maximum limit) of your total taxable rental income.

You will only qualify for one reduction regardless of the number of qualifying leases you may have.

The maximum reduction allowed each year

Maximum reduction allowed each year
Lease termAmount
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

 Different threshold amounts applied for 2014 and prior years.