If you sell the property now, you will owe €5,000.
If you keep it, you will make a net profit after tax of around €4,000 a year.
The question for you is whether the amount of work you are doing makes it worth €4,000 a year net. You also have to take a view on whether the property is likely to rise or fall in value. I presume you paid more than €165k for it? Therefore any increase in value up to the price you paid for it will be free of Capital Gains Tax. So it's quite a tax-efficient investment.
Have ppr with outstanding mortgage of 200k at 4%, house currently worth about 350k.
With a Loan to Value of 57%, you should not be paying 4% on your home loan. You should be switching to a cheaper lender or you should ask your lender for a better rate.
A few other considerations although I don't think that they really affect the underlying decision.
1) Which lender is it with? It's unlikely but possible that at some stage in the future the loan might be bought by a venture fund who might offer you a deal for early repayment.
2) Did you buy it as an investment property or was it your family home at any stage? If it was your family home, it's possible that your lender might allow you to move your mortgage to a new home if you have any plans for trading up from your current home. I think it's unlikely, but possible.
3) If you have plans to trade up, then you would be better off selling the rental property to reduce your overall lending.
4) At the moment you are paying around €5,000 a year in capital off the rental mortgage. If you sell it, you could use this money to pay down your home loan.