Buying a Second Home in Ireland: Expert Advice for 2026

Quick Answer: Buying A Second Home In Ireland

• Deposit: expect a larger deposit than for a first home, often 20% or more, as first-time buyer supports do not apply

• Tax: budget for stamp duty, Local Property Tax, and Vacant Homes Tax if the home is used under 30 days a year; rental income and any future gain are also taxable

• Mortgage: lenders assess your existing properties and debts, so an up-to-date valuation and approval in principle help

• Purpose matters: a holiday home, buy-to-let or part-time home are treated differently for tax, lending and insurance

• Protection: a second or holiday home sits empty for long spells, so a monitored alarm matters more here, watched 24/7 with a professional response whether you are there or not

The process for buying a second home in Ireland follows the same steps as buying a first home. However, there are other financial implications and additional considerations such as home security systems to be aware of.

Some people are tempted by the idea of owning a holiday home. A place where you can escape to when the stress of life gets to be too much. Others are thinking about buying a property to rent out as an extra income source. Either way, there are certain factors you need to consider, whether the second home is intended as a holiday home or a buy-to-let.

Below are some areas that are helpful to review beforehand:

Why are you buying a second home

Are you looking for the house to be an investment property or a holiday home where you can relax and have a weekend break away. When it comes to financial support, you’ll need to specify the purpose of the new house. This will have different tax, lending, and insurance implications.

With an investment property, you will be buying the property in order to rent it out to tenants. Review the expected rental yield of a house in your preferred area. After tax, can you afford to make any repayments if you get a mortgage? If buying a holiday home, will you utilise the property enough to justify the expense? Downsizing your home may also come into consideration if you are approaching retirement and you may wish to rent out your primary home while moving to a smaller home more adaptable to your retirement needs.

How to buy a second home and your financial options

Set your budget and ensure you can afford the cost of buying a second home. It's important to examine future expenditure. Don't put yourself under excessive financial pressure by making this purchase. If you plan to use a mortgage to make your purchase, you will need to establish how much you can borrow. Your current assets will be taken into consideration. So you will need an up-to-date valuation of any properties you already own.

Additionally, you will not qualify for first time buyer status whether you are purchasing a second home or a rental property, . This means you will need at least a 20% deposit. It doesn’t matter where else in the world your first property was purchased. Typically, lenders will look for you to be debt free on your first home or have considerable equity which can be leveraged for the purchase.

Check with your nearest bank or credit union to see what their financial criteria is to qualify for a buy to let mortgage or large loan. It is a good idea to get a mortgage offer in principle if you are planning on funding your new home through a mortgage.

Seek advice from an estate agent

There are so many factors to consider when buying a second home. It is beneficial to know the current trends and market advancements to make informed decisions.

You may consider contacting an estate agent. They have access to up-to-date information that you may not be aware of, as well as insight and experience in the market.  s will know all the things to look out for, even some things that you would never have thought of.

People think that seeking expert advice will cost unnecessary funds, but working with professionals will give you valuable knowledge. This knowledge could save you money in the long run. Their advice will help you along your purchasing journey and you are more likely to secure a better deal on your house.

Where to buy an investment property or holiday home in Ireland

Whether you are looking to purchase a rental property or holiday home, you should try to purchase in a location that is in demand. It' important that this demand isn’t based around seasonality as your income will only be limited to that time of the year.

If this second property is specifically orientated around a holiday home, you should ensure you are very familiar with the location and the amenities. This ensures you are completely satisfied with owning a home in that area.

Another consideration when purchasing a holiday home is the distance from your current home. You want to ensure you frequently make the most of the property, in order to justify the large investment. If you live a 4 hour drive away compared to a 2 hour drive away, you are less likely to spend time there or to make last minute plans for celebrations in that home.

Buying a holiday home in Ireland

A holiday home brings it's own considerations. Because it is often empty for long stretches, location, access and protection matter more than for a home you live in daily.

• Choose a location you will use: somewhere within an easy drive that you will visit often enough to justify the cost, with year-round rather than single-season appeal.

• Plan for an empty property: heating to prevent damp and mould, regular checks, and a plan for maintenance while you are away.

• Protect it around the clock: a holiday home left empty is an easy target, so monitored security matters more here than anywhere. With PhoneWatch, your property is watched 24/7 whether you are there or not, with a professional response if anything is detected.

Of these, protection is the one most often overlooked, and it matters most for a property you cannot check regularly.

Tax implications of owning a second home in Ireland

Given the current housing crisis in Ireland, the Irish government are putting a major emphasis on ensuring as many properties as possible are being made available in the housing market. This means that if you intend on buying a second home which will not be your primary residence and you will not rent out, then you may find yourself with an additional tax burden. Namely the vacant homes tax will apply to people in this situation. The vacant homes tax will apply to any residential properties which are occupied for less than 30 days in a 12-month period.

You should fully investigate the tax implications of buying a second home. In such circumstances you will then be able to handle any financial implications.

A second home in Ireland is taxed differently from your main home, and the rules depend on whether you live in it, leave it empty, or rent it out. The main areas to plan for are below. Tax rates and reliefs change, so confirm the current position with Revenue or a tax advisor before you buy.

• Stamp duty: payable on the purchase at the standard residential rates, the same as on any home. The first-time buyer reliefs and the Help to Buy scheme do not apply to a second home.
• Local Property Tax (LPT): payable every year on any residential property you own, including a second home.
• Vacant Homes Tax: applies to a residential property occupied for less than 30 days in a 12-month period, so a holiday home that is rarely used can fall within it.
• Rental income tax: if you let the property, the rental income is taxable at your marginal rate after allowable expenses, and you take on landlord responsibilities.
• Capital Gains Tax (CGT): when you sell, any gain is liable to CGT, currently 33%. The Principal Private Residence relief that can exempt your main home does not apply to a second home.

Because the combined bill can be significant, it is worth modelling the full tax cost before you commit, and taking professional advice for your own circumstances.

Benefits of owning a second home

The main benefit of owning a second home as an investment property is that it is an asset for the future. It is also a safer investment than stocks or investments. A second home is also used by many to top up their pension when they eventually retire. Housing usually goes up in value every year faster than inflation so is also a safer option than holding cash (for those fortunate enough to have the means).

For holiday homeowners, the main benefit is saving on hotel expenses and accommodation in your favourite area to vacate to. You also don’t need to worry about accommodation availability.

The downsides of owning a second home in Ireland

A second home is a major commitment, and it is worth weighing the drawbacks as carefully as the benefits.

• Higher upfront and running costs: a larger deposit, stamp duty, LPT, insurance and upkeep all add up on top of the purchase price.

• No first-time buyer supports: the reliefs and schemes available on a first home do not apply.

• Tax exposure: rental income, Vacant Homes Tax and Capital Gains Tax on sale can all reduce the return.

• Maintenance and security: a property that sits empty needs ongoing upkeep and protection, particularly a holiday home you cannot check regularly.

• Less liquid than other assets: property can take time to sell, and prices can fall as well as rise.

For many buyers the long-term asset still outweighs these, but going in with a clear view of the costs avoids surprises. 

How to finance a second home in Ireland

Financing a second home works differently from buying your first. You will not qualify for first-time buyer supports, and lenders look closely at what you already own and owe.

• Deposit: expect to need a larger deposit than for a first home, often around 20%, and more again, commonly around 30%, for a buy-to-let.

• How much you can borrow: lenders assess your income, existing mortgage and other debts, so an up-to-date valuation of any property you own helps. Many buyers are expected to be debt-free on their first home or to have significant equity to draw on.

• Approval in principle: it is a good idea to get a mortgage offer in principle if you are planning on funding your new home through a mortgage. so you know your budget and can move quickly when the right property appears.

• Buy-to-let vs holiday home: tell your lender the intended use, as the criteria, rates and deposit can differ between a buy-to-let, a holiday home and a home you will live in part-time.

A mortgage broker or your bank can confirm the current criteria and rates for your situation.

Protecting a second or holiday home

A property that sits empty is a more attractive target for burglars, and you are not there to notice a break-in, a fire or a burst pipe. That is why a monitored house alarm from Phonewatch matters even more for a second home.

• Monitored 24/7: your home is watched around the clock, with a professional team responding whether or not you are there

• Cover beyond burglary: monitored protection also covers fire and smoke, important in a property left unheated or unchecked

• Control from anywhere: the PhoneWatch app lets you arm, disarm and check your home from another county or another country

PhoneWatch protects over 120,000 Irish homes and responds to alarms within 15 seconds, with packages suited to holiday homes and second properties.

Managing home maintenance and home security

Once you have purchased your second property, you’ll need to have a strategy in place to maintain the house. The house will need to be regularly cleaned, be kept sufficiently warm during winter months to avoid damp and mould, as well as require additional checks. Consider our outdoor security tips to increase home security when you are not at home

It' also vital to to review home security options. A reliable home security system is a critical element for any house to ensure everyone inside are fully protected as well as the valuables . This will be even more crucial for a holiday homes, if you aren’t going to be around the property on a regular basis. Having a monitored ho system means that you are protected 24/7 and that you can keep your alarm armed day and night whether you are at the property or not.

Having a PhoneWatch monitored alarm system is proven to be 4.5 times more effective (based on data from the CSO recorded crime data and PhoneWatch internal ARC statistics) for homes not getting burgled. PhoneWatch don’t just monitor against break-ins but also protect against smoke incidents. Whether your alarm is armed or not, they respond to all alarm activations within 15 seconds to ensure you are safe and emergency services are contacted if required. The PhoneWatch app allows you to arm and disarm your alarm from anywhere in the world, check recent activation history, turn on and off smart plugs, view PIR camera footage and much more. 

You can read our recent blog on how to prevent burglary in your second home to learn more effective measures to keep your potential new second home safe.

Conclusion

Once you have finalised the above steps and have found a property which you are interested in and meets your allocated budget, it is no harm to seek further professional advice and have a structural survey done by a professional surveyor or architect. This will help assess if any renovations are required and if extra funding is needed. One of our recent blogs also has further information on the steps involved in buying a house in Ireland.

FAQs

How much deposit do you need for a second home in Ireland?

You will usually need a larger deposit than for a first home, often around 20%, and around 30% for a buy-to-let, because first-time buyer supports do not apply. Your lender will confirm the exact figure based on your circumstances.

How much tax do you pay on a second home in Ireland?

A second home is liable for stamp duty on purchase, Local Property Tax each year, and Vacant Homes Tax if it is used for less than 30 days in a year. Rental income and any gain on sale are also taxable. Confirm current rates with Revenue or a tax advisor.

Can you get a mortgage for a second home in Ireland?

Yes, though lenders assess your existing properties and debts and usually expect a larger deposit. Many buyers need to be debt-free on their first home or have significant equity. A mortgage approval in principle helps you set your budget.

What are the downsides of owning a second home?

The main drawbacks are the higher upfront and running costs, the loss of first-time buyer supports, tax on rental income and on any future sale, and the upkeep and security of a property that may sit empty.

Do you pay Capital Gains Tax when you sell a second home in Ireland?

Yes. Any gain on the sale of a second home is liable to Capital Gains Tax, currently 33%. The Principal Private Residence relief that can exempt your main home does not apply to a second home.

How do you protect a second or holiday home when you are away?

A monitored alarm is the most reliable option, because it is watched 24/7 and a professional team responds whether or not you are there. PhoneWatch protects second and holiday homes across Ireland, with response to alarms within 15 seconds.

Do you need an alarm for a holiday home in Ireland?

A holiday home is empty for long periods, which makes it a more likely target, so a monitored alarm is strongly recommended. It protects against break-ins and fire 24/7 and lets you check the property remotely, even when you are away for weeks at a time.

From house alarm systems to tailored home security, PhoneWatch create and install alarm systems to match your budget and give you peace of mind. We are trusted by over 118,000 homes in Ireland to keep them safe every day. Get a personalised home security quote today.