If you own rental property in Ireland but live abroad, you are classified as a non-resident landlord. This means you must declare your rental income to the Revenue Commissioners and comply with specific tax requirements. Understanding your tax obligations will ensure you avoid penalties and make the most of available tax reliefs.
Key Topics Covered in This Guide:
- What is a non-resident landlord?
- How to pay tax as a non-resident landlord
- Using a collection agent
- Tax reliefs for non-resident landlords
- Filing a tax return
- Getting expert help
What is a Non-Resident Landlord?
A non-resident landlord is someone who owns rental property in Ireland but resides in another country (including Northern Ireland). While your tax responsibilities are similar to those of Irish-resident landlords, there are additional rules regarding how rental income tax is collected and paid.
How Do I Pay Tax as a Non-Resident Landlord?
There are two ways to manage your rental income tax obligations:
- Appointing a Collection Agent: A trusted individual or professional service, such as Tax Return Plus, can handle tax filings and payments on your behalf.
- Tenant Withholding Tax: Your tenant withholds 20% of their rent and pays it directly to the Revenue Commissioners. You then claim this amount as a tax credit when filing your return.
Taxes must be filed and paid by October 31 each year to remain compliant.
Should I Use a Collection Agent?
Using a collection agent is often the most convenient and reliable option. While allowing tenants to withhold tax may seem simple, it places responsibility on them, and failure to pay could lead to complications. A collection agent ensures taxes are filed and paid correctly and on time.
Tax Reliefs for Non-Resident Landlords
Non-resident landlords can claim tax deductions on expenses similar to Irish-resident landlords, such as:
- RTB Registration Fee (€90 per tenancy)
- Qualifying Mortgage Interest (100% deductible if RTB-registered)
- Pre-Letting Expenses (up to €10,000 for vacant properties)
- Property Management & Accountancy Fees
- Insurance Premiums
Rental Income Tax Relief (2024–2027)
A temporary tax relief allows landlords to claim 20% of:
- €3,000 for 2024 (up to €600 tax reduction)
- €4,000 for 2025 (up to €800 tax reduction)
- €5,000 for 2026–2027 (up to €1,000 tax reduction per year)
This relief is only available if the property remains in the rental market for four years.
Filing Your Non-Resident Landlord Tax Return
If your net rental income exceeds €5,000, you must register for self-assessment and file a Form 11. If below €5,000, you can declare it via the Revenue Commissioners’ online platform.
If tenants have withheld tax on your behalf, you must submit a Form R185 to claim credit.
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