10 Tax Saving Tips For 2025

Smart financial planning can lead to significant tax savings for individuals, families, and business owners.
This guide outlines 10 practical and Revenue-compliant strategies you can use to reduce your tax bill and make more informed financial decisions this year.

1. 🏥 Health Expenses

You can claim 20% tax relief on unreimbursed medical expenses like GP visits, prescriptions, consultants, and hospital stays.
Nursing home fees offer even greater relief — these are deductible at your marginal rate of 40%, meaning a €10,000 expense could save you up to €4,000 in tax.

✅ Tip: Keep detailed receipts and medical invoices for your claim.

2. 🏠 Mortgage Interest Tax Credit

Introduced in Budget 2024, this credit is worth up to €1,250 for homeowners affected by recent interest rate increases.
You can claim 20% of the difference in interest paid in 2024 versus 2023 (and also between 2023 and 2022, if applicable).

✅ You’ll need a mortgage interest certificate for each year and confirmation of your balance as of Dec 31, 2023 (loan must have been between €80,000 and €500,000 at end of 2022).

3. 🧾 Rent Tax Credit

For 2023, the rent tax credit is €500 per individual or €1,000 for jointly assessed couples.
In 2024, this increases to €750 and €1,500 respectively.

✅ This applies to private rental accommodation, but other tax reliefs (like college tuition or voluntary pension contributions) may also apply to your situation.

4. 💰 Pension Contributions

Contributing to a personal pension or PRSA is one of the most powerful tax-saving strategies available.
If you pay tax at the 40% rate, every €1,000 you contribute can save you €400 in tax.

✅ Example: Contributing €5,000 could reduce your tax bill by €2,000.
✅ Employer contributions through a company are corporation tax-deductible, reducing profits taxed at 12.5%.

5. 👨👩👧👦 Employing Family Members

Wages paid to a spouse or children for real work in your business can be deductible, reducing taxable profits.
The key is to ensure payments are reasonable, documented, and in line with Revenue guidelines.

✅ It’s both a smart tax strategy and a way to support your family financially.

6. 🎓 Education and Training

Business owners (and their staff or family members working in the business) can deduct costs for professional courses or relevant training.

✅ Whether it's a certified course, workshop, or upskilling event, always keep proof of payment and course relevance to your trade.

7. 🏢 Consider a Company Structure

If you're self-employed and earning above a certain threshold, incorporating your business can reduce your tax burden.
Trading profits inside a company are taxed at 12.5%, significantly lower than personal rates of up to 52%.

✅ Speak to a tax advisor to see if this move aligns with your long-term goals.

8. 🛏️ Rent-a-Room Relief

If you rent out a room in your home, you can earn up to €14,000 per year tax-free under the Rent-a-Room scheme.
This initiative promotes affordable accommodation and helps homeowners supplement their income without paying extra tax.

✅ The room must be part of your main home and meet qualifying conditions.

9. 🎁 Small Gift Exemption

You can receive up to €3,000 per year, per donor — totally tax-free, with no Capital Acquisitions Tax (CAT).
This applies regardless of your relationship with the giver.

✅ Example: A couple could gift €6,000 to each child, grandchild, and in-law annually — potentially transferring €72,000 per year tax-free across generations.

10. 🎟️ Small Benefit Exemption

From January 1, 2025, employers can gift up to five non-cash benefits (e.g. vouchers) per year, worth a combined €1,500, completely tax-free.

✅ These cannot be converted to cash, but can be spent on goods or services.
✅ A great incentive strategy for small businesses and employees alike.

📌 Final Note:
These tips represent just a starting point. Your personal or business circumstances will determine which options suit you best.
For tailored advice, always consult with a qualified accountant or tax advisor.