A company lease can still qualify for the 10% moderate-rent tax rate
New tax guidance says a landlord may use the 10% autonomous IRS rate when a company rents the home for a named person's exclusive residence and every legal condition is met.
Archived after its publication day. Search retains this original briefing for background and accountability.
Archived 12 September 2026The name of the corporate tenant is not the only test; contract wording, actual use, rent ceiling and tax registration all matter.
- The reduced rate comes from article 45-C of the Tax Benefits Statute.
- The individual occupant must be identified and the home reserved exclusively for housing.
- The 2026 moderate-rent ceiling is €2,300 a month unless formally updated.
- The contract and changes must be reported correctly for stamp-duty purposes.
The contract needs more than a residential address
The AT position reported this week accepts that a company can be the formal tenant where the contract names the person who will live there, states exclusive residential use and prohibits subletting, transfer or business use. The rent must stay within the statutory limit.
A contract reported as non-residential does not become eligible merely because someone sleeps at the property. The written terms, the Modelo 2 communication and the real use need to agree.
Treat this as a fact-specific tax decision
The 10% rate applies to qualifying property income up to 31 December 2029, unless a more favourable rate applies. It is not a general 10% rate for every company lease or every landlord.
Before relying on it, ask a qualified tax adviser to review the signed wording, the landlord's tax position and the reporting trail. A binding answer issued for another taxpayer is useful interpretation, not a substitute for checking your own facts.
What you can do now.
- 01
Identify the actual resident and exclusive housing use in the draft contract.
- 02
Check the current rent ceiling and reporting requirements.
- 03
Have the complete arrangement reviewed before filing the tax return.
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