Buying a Second Home in Kerry: A Practical Guide and Rental Rules for 2025
Introduction
County Kerry’s dramatic coastline, world‑renowned scenery and vibrant tourism economy make it one of Ireland’s most sought‑after locations for a second home. Whether you’re looking for a weekend escape, a retirement retreat, or a property that can generate holiday income, buying in Kerry in 2025 requires a clear understanding of market dynamics, financing quirks, and the evolving rental‑letting rules that apply to secondary residences.
This guide walks estate agents, investors and private buyers through the most important considerations – from price trends and stamp‑duty calculations to the Rent Pressure Zone (RPZ) framework and short‑term letting limits that were tightened in 2025.
1. Why Kerry Remains a Top Choice for a Second Residence
| Factor | What It Means for Buyers |
|---|---|
| Tourism engine | Over 2 million overnight visitors in 2024, with peaks in June–August. High demand translates into strong holiday‑let potential. |
| Coastal variety | From the iconic Ring of Kerry to the rugged Dingle Peninsula, buyers can choose quiet coves or bustling resort towns. |
| Infrastructure upgrades | Recent broadband rollout (FTTH) reaches most towns; the N22 and N70 road upgrades improve access to Tralee and Killarney. |
| Lifestyle appeal | Strong community spirit, outdoor recreation (hiking, fishing, golf) and a growing “digital‑nomad” population. |
2. The 2025 Kerry Property Market at a Glance
Source: HousePrice.ie – Kerry County data, 2025.
- Median house price: €272,000 (↑ 11 % YoY).
- Total sales: 1,088 residential transactions in 2025.
- Current listings: 640 houses for sale (as of November 2025).
Town‑by‑Town Median Prices (2025)
| Town | Median Price | Typical Property Types |
|---|---|---|
| Dingle | €395,000 | Detached, renovated cottages |
| Killarney | €341,000 | Semi‑detached, townhouses |
| Kenmare | €295,000 | Detached, boutique bungalows |
| Tralee | €254,500 | Semi‑detached, apartments |
| Waterville | €290,000 | Coastal bungalows, sea‑view homes |
| Listowel | €226,000 | Terraced, family homes |
| Castleisland | €220,000 | End‑of‑terrace, starter homes |
Coastal hotspots (Dingle, Kenmare, Waterville) command a premium of 15‑30 % over inland towns.
3. Financing a Second Home in Kerry
3.1 Mortgage Considerations
| Item | Typical Requirement (2025) |
|---|---|
| Loan‑to‑Value (LTV) | 70‑80 % for second homes (higher than first‑home LTV). |
| Interest rates | 5.4 % (standard variable) – 6.2 % (fixed 5‑year) for second‑home borrowers. |
| Affordability test | Must include projected rental income if the property will be let (subject to RPZ limits). |
| Additional documentation | Proof of existing mortgage, rental income forecasts, and a higher deposit (often €30‑50k). |
3.2 Stamp Duty & the Additional Dwelling Supplement (ADS)
- Standard residential stamp duty (2025):
- 0 % up to €1 m.
- 2 % on the portion above €1 m.
- Additional Dwelling Supplement (ADS): 3 % of the purchase price for a second home plus the standard stamp duty.
- Example: Buying a €300 k second home → €300 k × 3 % = €9 000 ADS + €0 stamp duty = €9 000 total.
- Exemptions: None for second homes used as a primary residence; however, if the property is classified as a holiday let and the owner resides elsewhere, the ADS still applies.
Source: Revenue.ie – Stamp Duty rates (2025).
3.3 Tax Implications
| Tax | Rate / Detail |
|---|---|
| Income Tax on Rental | Standard marginal rates (20 %/40 %). Expenses (mortgage interest, repairs, management fees) are deductible. |
| Capital Gains Tax (CGT) | 33 % on gains when you sell, after the €1 500 annual exemption. |
| Local Property Tax (LPT) | Based on market value band; for a €300 k home, LPT ≈ €300 per year (2025 rates). |
4. Choosing the Right Location Within Kerry
4.1 Coastal Villages Ideal for Holiday Lets
- Dingle Peninsula – high occupancy (90 % in summer), strong brand as “Irish Riviera”.
- Kenmare – boutique market, average nightly rate €180‑€250.
- Waterville & Cahersiveen – quieter, attracting families and “stay‑longer” guests.
4.2 Towns with Strong Year‑Round Demand
- Killarney – university and tourism hub; good for long‑term lets to students or staff.
- Tralee – administrative centre, stable demand for professional rentals.
4.3 Practical Site‑Selection Checklist
- Road access & parking – essential for short‑term guests.
- Broadband speed – at least 30 Mbps for remote workers.
- Planning status – verify if the plot already has a “tourism” use permission (see Section 5).
- Proximity to amenities – shops, medical centre, and attractions.
5. Rental Restrictions That Affect Secondary Residences (2025)
5.1 Rent Pressure Zones (RPZ)
- Killarney LEA was designated an RPZ in April 2020 and the zone was extended county‑wide in June 2025 (Gov.ie).
- Implications:
- Maximum rent increase = 4 % per year (or CPI, whichever is lower).
- Short‑term letting (≤ 14 days) is restricted in RPZs unless a change‑of‑use planning permission is obtained.
5.2 Short‑Term Letting Rules (July 2025 Update)
| Rule | Details |
|---|---|
| Definition | Letting for ≤ 14 days per stay. |
| Cumulative limit | 90 days per calendar year for a non‑principal residence. |
| Planning permission | Required once the 90‑day threshold is exceeded, unless the property already has a “tourism accommodation” use. |
| Homesharing exemption | If the property is the owner’s principal residence, renting a spare room (or the whole house while the owner is away) is exempt up to 90 days without permission. |
| Registration | Owners must submit Form 15 (start‑of‑year notification) and Form 16 (if > 90 days) to Kerry County Council’s Planning Department. |
Source: Kerry County Council – Home Sharing and Short‑Term Lettings policy (2025).
5.3 Enforcement & Penalties
- Fines up to €5 000 for unregistered short‑term lets.
- Legal action may lead to an order to cease the letting and possible court costs.
- Complaints can be lodged via the council’s online portal; the Planning Authority must investigate unless the complaint is deemed “trivial”.
5.4 Practical Steps to Remain Compliant
- Check RPZ status for the address (Kerry County Council GIS map).
- Determine intended let type (long‑term vs short‑term).
- Apply for change‑of‑use (Form 16) before exceeding 90 days.
- Maintain a rental log (dates, guest numbers) for audit purposes.
- Consider a management company that specialises in RPZ‑compliant holiday lets.
6. Managing the Property Once You Own It
| Area | Key Advice |
|---|---|
| Insurance | Obtain a “holiday let” policy that covers short‑term guests, accidental damage, and loss of rent. |
| Maintenance | Schedule seasonal maintenance (roof, gutters) before the high‑season to avoid cancellations. |
| Accounting | Keep detailed records of all expenses; use a dedicated bank account for the rental activity. |
| Marketing | List on Irish platforms (Airbnb Ireland, Stayy, HomeAway) and on local tourism sites (Kerry Tourism Board). |
| Professional Management | For owners living abroad, a local letting agent can handle guest check‑in, cleaning, and RPZ compliance reporting. |
7. A Step‑by‑Step Checklist for Buying a Kerry Second Home
- Define purpose – holiday let, long‑term rent, personal retreat.
- Set a budget – include purchase price, €9 k ADS, €2‑5 k legal fees, and a 10 % contingency for renovations.
- Secure financing – obtain mortgage pre‑approval with a 70‑80 % LTV.
- Select location – use the town‑by‑town price guide and RPZ map.
- Conduct due diligence – title search, planning status, and any existing licences.
- Make an offer – negotiate based on recent comparable sales (e.g., a €300 k detached in Dingle vs €260 k in Tralee).
- Engage a solicitor – ensure stamp‑duty, ADS and conveyancing are correctly handled.
- Register for stamp duty & ADS – pay within 30 days of completion.
- Apply for any needed planning permission (Form 16) before the first short‑term let.
- Set up rental infrastructure – insurance, management contract, accounting system.
Conclusion
Purchasing a secondary residence in County Kerry in 2025 offers the allure of coastal living and the prospect of lucrative holiday income, but success hinges on navigating a market that’s both vibrant and tightly regulated. By understanding current price trends, budgeting for the Additional Dwelling Supplement, securing appropriate financing, and adhering to the expanded Rent Pressure Zone and short‑term letting rules, buyers can protect their investment while enjoying the lifestyle that Kerry uniquely provides.
Whether you’re an estate agent guiding clients or an investor looking to diversify, the steps outlined above will help you turn a dream Kerry getaway into a compliant, financially sound second home. Happy house hunting!