Do I get tax relief if I remortgage my home and then let it?

Hi. We have a house in dublin which has been our home for the past 10 years. We overpaid our mortgage and now have very little debt in it. We want to buy a new house down the country but keep the dublin house and rent it out. We would fund the country house by doing a release equity on the dublin house. Would interest payments on the dublin house be deductible on the dublin home?? Tia

I don't think so - see the revenue web site https://www.revenue.ie/en/property/rental-income/irish-rental-income/what-expenses-are-allowed.aspx

You may be allowed claim Mortgage Interest Relief against your rental income. The interest must be from a mortgage that is used to purchase, improve or repair your rental property.

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No, the money borrowed must be used to buy the investment property.

If you remortgaged your existing home to buy an investment property, the interest would be allowed as an expense, even though the investment property has no mortgage secured on it.

Likewise, if you remortgage an investment property to buy a home to live in, you can't claim the interest as the money was not borrowed to buy the investment property.

Brendan

You should do a Money Makeover as it probably makes sense to sell your existing home and have no mortgage.