Tax reduction for renovation work in rural tourist residences rewritten and extended to furnished holiday lets and holiday villages

Article 20(C) of the Rural Areas Development Act rewrites Article 199 decies F of the General Tax Code. Individuals who carry out reconstruction, extension, repair or improvement work between 1 January 2005 and 31 December 2010 on a dwelling intended for letting receive an income tax reduction: a dwelling in a classified tourist residence in a rural revitalisation area or an Objective 2 area (outside towns of more than 5,000 inhabitants), a furnished holiday let completed before 1989 in those areas, or a dwelling in a rehabilitated holiday village. The reduction is 20% of expenditure (40% in holiday villages), up to €50,000 a year for a single person and €100,000 for a couple, in return for a nine-year letting commitment. It applies to work completed from 1 January 2005. This tax reduction for renovation work had existed since the 1998 amending finance act; Article 20 rewrites it.