Ireland Commercial Lease Guide

Commercial Lease Guide for Ireland

A practical, tenant-focused guide to Irish commercial leases — not legal advice.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

Not legal advice. Use this as a checklist and discuss with a qualified professional.

What to know before you sign

Ireland's commercial leasing market is a Full Repairing and Insuring (FRI) market with a hugely important quirk: upward-only rent reviews are banned in leases granted on or after 28 February 2010 under the Land and Conveyancing Law Reform Act 2009.

Irish tenants need to understand renewal rights under the Landlord and Tenant (Amendment) Act 1980 (now usually renounced for office and industrial leases by deed of renunciation), 23% VAT on rent where the landlord has opted to tax, the Capital Goods Scheme, and dilapidations exposure at expiry.

Major markets

Where commercial activity concentrates.

Dublin
Cork
Galway
Limerick
Waterford

Common lease types

Typical structures and what to watch.

FRI lease (Full Repairing and Insuring) — standard for offices, industrial, retail
Lease with renunciation of LTA 1980 renewal rights (now market standard)
Short-term lease under 5 years (no statutory renewal right arises)
Sub-lease (head landlord consent and AGAs may apply)

Cost drivers

Items that often create surprise bills.

Service charge in multi-let buildings (caps and exclusions matter)
Insurance reimbursement (landlord arranges, tenant pays the premium)
Commercial rates set by the local authority (Valuation Office revaluations)
VAT at 23% on rent where landlord has opted to tax — affects partially exempt tenants
Capital Goods Scheme adjustments on landlord refurbishment costs
Dilapidations exposure at lease end
Stamp duty on grant of lease (1% on average annual rent for leases ≤35 years)

Key things to watch in Ireland

Lease structures and statutory protections vary by country. Here are top issues we see for tenants in Ireland:

Landlord and Tenant (Amendment) Act 1980

Business tenants who have occupied for 5+ years (and met the "business equity" test) have statutory rights to a new tenancy at expiry — unless the lease is renounced via a properly executed renunciation deed before signing. Confirm renunciation status.

FRI leases and dilapidations

Most Irish commercial leases are FRI. Dilapidations exposure at exit can be substantial; negotiate a Schedule of Condition with photographs on entry to limit make-good obligations.

Upward-only rent reviews

Pre-2010 leases typically contained upward-only rent reviews. New leases signed after 28 February 2010 cannot contain upward-only review clauses (Land and Conveyancing Law Reform Act 2009). Confirm review mechanism.

VAT and capital goods scheme

Many commercial properties are subject to a "landlord option to tax" with VAT (23%) on rent. The Capital Goods Scheme can create VAT recovery complications on long leases — get accounting advice before signing.

Negotiation checklist

Schedule of Condition to limit FRI exposure

Attach a photographic and written Schedule of Condition to the lease and qualify the repair obligation to "no worse than" that documented state. Without it, an FRI lease can require betterment at exit.

Rent review structure post-2010

For leases granted on or after 28 February 2010, upward-only reviews are unenforceable under section 132 of the Land and Conveyancing Law Reform Act 2009. Confirm the review is genuinely two-way (market) or use CPI with cap/collar or fixed uplifts.

Renunciation of LTA 1980 renewal rights

Office and industrial landlords now routinely require a deed of renunciation under section 17(1)(a)(iiia) of the Landlord and Tenant (Amendment) Act 1980. Get independent legal advice before signing — the renunciation extinguishes your statutory right to renew.

Break option mechanics

Make the break conditional only on paying principal rent and giving vacant possession. Avoid conditions tied to "all covenants performed" — they have caused tenants to lose breaks in Irish High Court cases.

VAT and Capital Goods Scheme

Confirm whether the landlord has exercised the "landlord's option to tax" — this triggers 23% VAT on rent. Partially exempt tenants (e.g. financial services) should model the irrecoverable VAT before signing.

Service charge cap and exclusions

In multi-let buildings ask for a cap, RICS code-style compliance, and exclusion of improvements, initial defects, marketing/leasing costs, and any sinking fund you will not benefit from.

Dilapidations strategy

Photograph everything at entry, maintain a defects log, and budget for terminal dilapidations. Negotiate a cap or cash settlement option where the next tenant will alter the space.

Common landlord traps

Uncapped pass-throughs / outgoings: Operating costs, taxes, and insurance can rise year-to-year without a cap unless negotiated.
End-of-term reinstatement / make-good / dilapidations: Costs can be substantial; negotiate a Schedule of Condition or carve-outs.
Notice deadlines: Renewal, break, and option rights typically depend on strict written notice windows — calendar at signing.

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Official resources

Department of Enterprise, Trade and Employment Revenue.ie — VAT on property Law Society of Ireland Valuation Office — commercial rates

Other regions

Frequently asked questions

Are upward-only rent reviews allowed in Ireland?

Not for leases granted on or after 28 February 2010. Section 132 of the Land and Conveyancing Law Reform Act 2009 makes upward-only review provisions in post-2010 commercial leases void, so the rent can go up or down at market review.

Can my landlord force me to give up renewal rights?

A landlord can require the tenant to sign a deed of renunciation under section 17(1)(a)(iiia) of the Landlord and Tenant (Amendment) Act 1980, provided the tenant has received independent legal advice. Renunciations are now standard for office and industrial leases.

Is VAT charged on commercial rent in Ireland?

Only if the landlord has exercised the landlord's option to tax. Where the option applies, 23% VAT is added to rent. Partially exempt tenants (e.g. banks, insurers, healthcare) should model the irrecoverable VAT carefully.

What is FRI and how do I limit my exposure?

FRI (Full Repairing and Insuring) shifts repair and insurance reimbursement to the tenant. Attaching a Schedule of Condition and qualifying the repair covenant to "no worse than" the documented state is the principal mitigation.

Does BizLeaseCheck provide legal advice?

No. It helps you spot common risks and compare leases quickly, but it is not legal advice. Use it alongside an Irish commercial property solicitor for your situation.