Quick answer
- The Central Bank LTV limit for buy-to-let is generally 70%, implying at least 30% deposit.
- Lenders can apply stricter deposit, income and rental-coverage rules.
- Gross rent is not profit or free cash flow.
- Tax, vacancy, repairs, insurance, RTB registration and compliance belong in the budget.
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Deposit and mortgage starting point
The general Central Bank buy-to-let LTV limit is 70% of property value. A €400,000 property therefore starts with a maximum €280,000 mortgage and at least €120,000 deposit before Stamp Duty and buying costs. Lenders can require a lower LTV.
The owner-occupier LTI limits do not work as a simple buy-to-let entitlement. Lenders assess the applicant, existing debts, property, expected rent and stressed repayment coverage under their own policy.
Repayment illustration
A €280,000 capital-and-interest mortgage at an illustrative 5.00% over 25 years is about €1,637 per month, before insurance, fees and any rate change. The total interest would be about €211,000 if the rate never changed.
Some buy-to-let products may be interest-only for a period. That lowers the current payment but does not reduce capital, so the exit plan and refinance risk need specific attention.
Build cash flow from gross rent down
| Start with | Then allow for |
|---|---|
| Gross rent received | Vacancy and unpaid rent |
| Less mortgage payment | Rate stress and capital/interest structure |
| Less operating costs | Repairs, insurance, management, service charge and RTB |
| Less tax provision | Taxable rental profit and personal circumstances |
| Remaining cash flow | Major works and emergency reserve |
Test a vacant month, a higher rate and a major repair instead of relying on the best month.
Tax and mortgage-interest boundary
Irish rental income must be declared. Revenue permits qualifying expenses under its rules, and mortgage interest on money used to buy, improve or repair the rental property may be deductible where conditions are met, including RTB registration where required. The capital repayment is not the same as deductible interest.
Tax depends on ownership, finance use and individual circumstances. Keep loan, rent and expense records and obtain tax advice rather than treating a cash-flow table as a tax return.
Landlord and property checks
- Most residential tenancies must be registered with the RTB when they begin and annually.
- The property must meet minimum standards and legal rental requirements.
- Check rent-setting rules, notices, insurance and management-company restrictions.
- Budget for planned maintenance, emergency repairs and periods without rent.
- Compare investment concentration, liquidity and the risk that sale proceeds may be below the mortgage and costs.
Frequently asked questions
How much deposit is needed for buy-to-let in Ireland?
The general 70% LTV limit implies at least 30%, but a lender can require more.
How is buy-to-let borrowing assessed?
Lenders may review personal finances, existing commitments, property value, expected rent and stressed rental coverage under their own policies.
Is a buy-to-let mortgage interest-only?
Some products may offer interest-only structures or periods, but capital remains outstanding and must be repaid or refinanced.
Can I deduct the full mortgage payment from rent?
No. Capital repayment is not mortgage interest. Revenue rules determine what qualifying interest and other expenses may be deducted.
Must a landlord register with the RTB?
Most residential tenancies must be registered when they begin and renewed annually, subject to statutory exceptions.
Should rent equal the mortgage payment?
That is not enough. Rent must also cover vacancy, tax, repairs, insurance, management, compliance and a risk buffer.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.