Tax  relief is available on a certain amounts of the monies received from renting out farm land.

The amount of money that can be received tax free will depend on a certain number of factors and conditions being met.


Firstly we will begin with the conditions that must be satisfied so the income will qualify for relief:

  1. The farm land must be in the state.
  2. A lease must be written up and evidenced and be for a minimum period of 5 years.
  3. Must be at an arm’s length i.e. market value and not between close relatives.
  4. The relief can’t be used to create a loss.


The yearly amounts that can be earned tax free depend on the length of the lease:

(a)The maximum relief is €40,000 a year if there is a lease in place for 15 years or more

(b)€30,000 a year if the lease is for 10 years and less than 15 years.

(c)€22,500 a year if the lease is for 7 but less than 10 years.

(d) €18,000 a year if the lease s for between 5 and 6 years.

There is still Universal social charge & PRSI on this income.

Should you need any further help in relation to relief for the lease of land, please contact a member of our team by emailing and one of our agri tax specialists will contact you.