Quick answer
In Ireland, buying usually beats renting if you can get a mortgage. On our defaults (€380,000 home, €1,900 rent, 10% deposit, 3.8% rate), the monthly cost of owning roughly matches rent, upfront costs are low, and buying pulls ahead from year 1. Even with zero house-price growth, buying leads after about five years. The real barrier is saving the deposit and qualifying at 4× income.
How do you use the rent vs buy calculator for Ireland?
On our Irish defaults, buying beats renting from the first year and finishes roughly €280,000 ahead after 10 years. Owning costs about the same each month as renting, while low upfront costs and steady mortgage repayments build equity. Even with zero house-price growth, buying pulls ahead in about year five. In Ireland the hard part is rarely the maths. It is saving the deposit and getting approved under the Central Bank’s lending limits.
The calculator compares two households over the horizon you choose. The buyer pays a deposit, stamp duty and legal fees, then the mortgage, Local Property Tax, maintenance and home insurance. The renter pays rent plus contents insurance and invests the deposit, plus any monthly saving, at the investment return. Both are valued at the end, after the buyer’s selling costs. See our methodology for the full method.
What do our Irish defaults assume?
| Input | Default | Why |
|---|---|---|
| Home price | €380,000 | Close to a typical national price for a family home outside central Dublin |
| Monthly rent | €1,900 | A comparable home on a new lease |
| Deposit | 10% | The minimum for first-time buyers under Central Bank rules |
| Mortgage rate | 3.8% | Slightly above the 2026 average for new fixed-rate loans |
| Term | 30 years | |
| Buying costs | 2.5% | 1% stamp duty plus solicitor, survey and valuation |
| Selling costs | 2% | Estate agent fee of about 1–1.5% plus VAT, and legal fees |
| Property tax (LPT) | 0.1% | Roughly €380 a year at this value |
| Maintenance | 1% | |
| Insurance | 0.1% | Home (buildings) insurance |
| Appreciation | 5% | Reflects persistent supply shortages; test lower values |
| Rent growth | 4% | For new lettings; sitting tenants are now capped lower |
| Investment return | 6% | After Irish tax on investments, which can be high |
The Central Bank of Ireland’s retail interest rate statistics put the weighted average rate on new fixed-rate mortgages at about 3.5% in mid-2026. If you have an approval in principle, enter your actual rate.
Worked example: a €380,000 home vs €1,900 rent
Upfront cash: a €38,000 deposit plus €9,500 in buying costs, or €47,500 in total. Stamp duty accounts for €3,800 of that.
Monthly mortgage: the loan is €342,000 at 3.8% over 30 years. The amortisation formula, M = P × r ÷ (1 − (1 + r)^−n) with r = 0.038 ÷ 12 and n = 360, gives about €1,594 a month. In the first month, about €1,083 is interest and €511 repays capital.
Total monthly cost of owning in year 1: about €1,974. That is the mortgage plus about €380 a month for LPT, maintenance and insurance. The renter pays €1,910 including contents insurance. The two are almost level, so the renter has very little to invest each month beyond the €47,500 starting pot.
After 10 years:
- Buyer: home worth about €619,000, minus 2% selling costs and a remaining loan of about €267,600. That gives a net worth of about €370,000.
- Renter: a portfolio worth about €87,000.
- Break-even year: year 1. Buying is already narrowly ahead after the first year.
- Break-even rent: far below any realistic Irish rent for this kind of home. You would need to rent the home for under about €450 a month for renting to win over 10 years on these assumptions.
The 5% rule says €380,000 × 5% ÷ 12 = €1,583. Rent of €1,900 sits above that, which also points to buying. Check it in the 5% rule calculator.
Does the verdict survive less optimistic assumptions?
| Scenario | Buyer vs renter after 10 years | Break-even year |
|---|---|---|
| Defaults (5% growth) | Buyer ahead by about €283,000 | Year 1 |
| House prices grow 3% a year | Buyer ahead by about €184,000 | Year 2 |
| Rent growth 2% (protected tenancy) | Buyer ahead by about €254,000 | Year 1 |
| 2% price growth, 2% rent growth, 4% rate | Buyer ahead by about €103,000 | Year 2 |
| Zero house-price growth | Buyer ahead by about €64,000 | Year 5 |
Ireland is unusual. In many markets, buying only wins if prices rise. In Ireland, rent is already as expensive as a mortgage, so the buyer’s capital repayments alone eventually outrun the renter’s small savings.
What are the costs of buying and selling in Ireland?
| Cost | Typical amount | Notes |
|---|---|---|
| Stamp duty | 1% up to €1m; 2% from €1m to €1.5m; 6% above €1.5m | On new homes it is charged on the VAT-exclusive price |
| Solicitor’s fees | Often €2,000–€3,500 plus VAT and outlays | Includes Land Registry and search fees |
| Survey and valuation | A few hundred euro each | The bank requires a valuation |
| Mortgage protection insurance | Monthly premium | Usually required by lenders |
| Estate agent (selling) | Often around 1%–1.5% plus 23% VAT | Plus advertising |
| Capital gains tax | None on your main home | Principal Private Residence relief |
New-build prices include 13.5% VAT, which is already in the price you see. Second-hand homes have no VAT.
What mortgage rules and supports apply in Ireland?
Central Bank mortgage measures. Borrowing is generally limited to 4× gross income for first-time and second-time buyers, and 90% loan-to-value. Buy-to-let loans are limited to 70% LTV. Lenders can make a limited share of loans above these limits each year as exceptions. On our defaults, a €342,000 loan needs income of about €85,500 at 4×.
Help to Buy (HTB). First-time buyers of a new home, or a self-build, can claim back income tax and DIRT paid in recent years. The refund is worth up to €30,000 or 10% of the price, whichever is lower, for homes priced at €500,000 or less. The scheme runs until the end of 2029, with details on Revenue’s Help to Buy pages. In the calculator, lower the deposit you fund yourself by the HTB amount.
First Home scheme. This shared-equity scheme can fund up to 30% of the price of a new home, or 20% if you also use HTB, in exchange for an equity stake. Price ceilings vary by county. You can redeem the stake later. The calculator does not model the stake directly. An approximate method is to treat the equity share as a lower price on entry and a smaller share of the gain on exit.
Local Authority Home Loan. A state-backed mortgage for buyers who cannot get enough credit from banks, subject to income limits.
How do Irish rent rules affect the comparison?
The rental market changed on 1 March 2026, when the Residential Tenancies (Miscellaneous Provisions) Act 2026 took effect:
- Nationwide rent controls. The previous rent pressure zone system now effectively covers the whole country. Annual increases are capped at CPI or 2%, whichever is lower.
- Tenancies of minimum duration. New tenancies created from 1 March 2026 run for six years, on a rolling basis.
- Rent resets. For new tenancies, landlords can reset to market rent at the end of each six-year cycle, or when a tenant leaves voluntarily or breaches the lease.
- Existing tenancies continue under the earlier rules.
For a sitting tenant, the reforms make rent more predictable. Set rent growth to about 2% if you expect to stay put. For anyone moving, new-letting rents still reflect a severe shortage. That is why our default keeps 4%. The Department of Housing’s rental reform pages summarise the rules. Renters can also claim the Rent Tax Credit against income tax, which the calculator does not model.
Local Property Tax. LPT for 2026–2030 is based on each home’s self-assessed value on 1 November 2025, using new, wider bands. Most homes pay a few hundred euro a year, and councils can vary the basic rate by a local adjustment factor.
How do inputs change across Irish cities?
| City | How to adjust the calculator |
|---|---|
| Dublin | Higher prices and rents. Try €480,000 against €2,400 rent and buying still leads clearly. The constraint is the 4× income cap, so check you can actually borrow €432,000. |
| Cork | Somewhat below Dublin on both price and rent, with similar dynamics. Buying usually wins if you plan to stay. |
| Galway | Very tight rental supply and high rents relative to prices. Buying tends to win, though apartments are scarce. |
| Limerick | Lower prices make the 4× income limit easier to meet. Price growth has been strong, but test a lower appreciation rate. |
| Waterford | Among the more affordable cities. The deposit is easier to save, so the cash hurdle is lower. |
Apartments in managed developments carry annual management fees, often called service charges. Enter them as a monthly fee. A building with a low sinking fund or fire-safety defects can face large levies, so read the owners’ management company accounts. Our condo calculator handles service-charge-heavy homes.
When does renting win in Ireland, and when does buying win?
Renting tends to win when:
- you expect to leave Ireland or move city within about three years
- you have an old tenancy at a rent far below market and expect it to stay capped
- buying would mean borrowing at the 4× limit with no buffer for repairs
- you are comparing a city-centre apartment with high service charges and defect risk against renting a similar unit
Buying tends to win when:
- you can qualify for the mortgage and stay five years or more
- your rent is at or above the full monthly cost of owning (about €1,970 on the defaults)
- you are buying a new home and can use Help to Buy or the First Home scheme
- you want security from the risk of a rent reset when your tenancy ends
For more on the trade-offs, see is a mortgage cheaper than rent? and should you buy or rent right now.
Ireland rent vs buy checklist
- Get an approval in principle to confirm your 4× income limit and your actual rate.
- Price your deposit: 10% of the price plus about 2.5% for stamp duty and fees.
- Check Help to Buy and First Home eligibility if you are buying a new home.
- Set rent growth correctly: about 2% for a protected tenancy, higher if you will move.
- Look up the LPT band for the home’s value.
- For apartments, ask for service charge accounts and any planned levies.
- Stress-test at 3% price growth and a 1-point higher rate.
- Compare your horizon with the break-even year. In Ireland it is usually short.
This calculator gives estimates based on your inputs, not financial advice. For comparisons with other markets, open the UK calculator or the all-countries hub.
Frequently asked questions
Is it better to rent or buy in Ireland in 2026?
For most people who can qualify for a mortgage, buying comes out ahead. Irish rents are high relative to mortgage repayments, stamp duty is only 1% on most homes, and a 10% deposit keeps the upfront cash low. Renting makes more sense if you expect to move within a few years, cannot buy without stretching, or have a protected tenancy at a rent well below market.
How much can I borrow under the Central Bank rules?
The Central Bank of Ireland's mortgage measures generally cap borrowing at four times gross income for first-time and second-time buyers, with a maximum loan-to-value of 90%. Lenders can make a limited share of loans above these limits as exceptions. On our default €342,000 loan, you would typically need a household income of around €85,500.
How does Help to Buy work with the calculator?
Help to Buy refunds income tax to first-time buyers of new homes. It is worth up to €30,000 or 10% of the price, whichever is lower, on homes costing €500,000 or less, and runs until the end of 2029. Because it reduces the cash you put in, you can model it by lowering the down payment percentage or reducing buying costs by the amount received.
What is stamp duty on a house in Ireland?
Stamp duty on residential property is 1% on the first €1 million, 2% on the portion from €1 million to €1.5 million, and 6% above €1.5 million. On a €380,000 home that is €3,800. Our 2.5% buying-cost default adds solicitor's fees, a survey and valuation.
How do the March 2026 rental reforms affect renting vs buying?
Since 1 March 2026, rent controls apply nationwide. Annual increases are capped at inflation or 2%, whichever is lower, and new tenancies run for a minimum of six years. Rents can reset to market rates between tenancies and at the end of each six-year cycle. If you have a secure tenancy, consider a rent-growth input of around 2% rather than our 4% default.
Does Local Property Tax make a big difference?
Not usually. LPT for 2026 to 2030 is based on your home's value on 1 November 2025, and for most homes it comes to a few hundred euro a year. Our default of 0.1% of value, about €380 a year on the default home, is in that range. Revenue's band table gives the exact charge.