Tax on Non-Resident Landlords Rental Income

Posted in Good Advice, Landlord, Taxation

If you own property in Ireland which generates rental income you are obliged by law to file an annual Income Tax return with the Irish Revenue Commissioners. This applies whether you live in Ireland or not.

As you are a non-resident landlord income tax at 20% must be deducted from your gross rental income.

However if you have appointed a collection agent who has registered you with the Revenue Commissioners for collection activity – to collect rent and file tax returns on your behalf – they are not entitled to deduct income tax at 20% but may retain a sufficient portion of the rent to satisfy the tax payable on the rent.

In computing your taxable rent you can take a deduction for expenses including management/letting agents fees, repairs and maintenance, insurance, wear and tear and RTB registration. If there is a mortgage on the property the interest on same is allowed as a deduction (but NOT the capital repayment).

Residential tenancies must be registered with the Residential Tenancies Board (RTB) and if not tax allowable expenses may be reduced.

We can act as your tax filing agent to prepare your annual Rental Account and file it with your Income Tax Return so call us on 00353 21 4310266.

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