Long-term Land Leasing

Land Leasing is perhaps the most straightforward and widely-used collaborative model in Ireland. In essence, it involves a landowner leasing out land to another farmer for an agreed period and payment. Long-term leasing can provide a steady, tax-efficient income while stepping away from the physical demands of farming. For farmers without access to land, especially young, ambitious individuals, it offers a viable pathway to build a business without the financial burden of land ownership.

The Irish government supports land leasing with tax incentives that reward leasing arrangements that are in excess of five years. These leases can provide significant tax-free income, with tax relief starting at €18,000 per year for a five year lease and rising to €40,000 in the case of a 15+ year lease. There can be current and future tax implications when dealing with land leasing arrangements so it is important that land owners discuss any potential options with a financial or legal advisor before they proceed.