New Tax Obligations for Non-Resident Landlords

We can help you navigate Revenue’s new online system for Non-Resident Landlords which must be used from 1st July 2023.

A non-resident landlord is someone who owns a rental property in the Republic of Ireland but is living abroad. Non-resident landlords must declare all income from Irish rental property to the Irish Revenue Commissioners.

They must also select one of the following options for managing tax on their rental property:
1. Tenant Tax Withholding
2. Appoint a Collection Agent

Prior to 1 July 2023, the tenant would deduct and pay 20% withholding tax to Revenue and provide proof with a form R185 to the landlord. The landlord files their personal tax return and claims credit for tax withheld.

Alternatively, the Collection Agent* takes responsibility for filing the personal tax return and arranging tax payment on behalf of the property owner but is not obligated to withhold tax on the rent received.

* (typically someone the landlord trusts, like a friend or family member or a professional such as a  letting agent)

So what are the tax rule changes for Non-Resident Landlords?

Tenants or the Collection Agent must now:

• Notify Revenue online via ROS or My Account of payments to their landlord
• Arrange payment online of 20% of the rental payment

The landlord must now:

• File their own personal Income Tax return, regardless of whether they have appointed a collection agent, but can claim a credit for the monies withheld.

Filing Tax Returns for Non-Resident Landlords – how we can help

Contracting PLUS can help Landlords navigate the new system and can help prepare and file your personal tax Return (Form 11).

As the new system is arriving mid-year there may be a requirement to file two tax returns.

If the property is jointly owned, then each owner may need to file two tax returns for 2023 for the one property. If the landlord(s) has other income to be taxed in Ireland, then this will need to be included and our tax experts can advise.

Other points

• Tenants are keen to claim the new rent tax credit for 2022 which will be available until 2025 and in doing so must confirm if the landlord is living abroad
• Property owners living abroad and renting their Irish property via an online website like Airbnb are treated differently for tax purposes
• Non-resident landlords cannot claim rent-a-room relief as the landlord must be living in the property

This has been carefully prepared in June 2023, but is written in general terms and should be seen as broad guidance only.

Contracting PLUS provides proactive, accounting and tax advice for smart independent professionals. If you are an independent professional, contractor, or freelancer in need of proactive accountancy and tax advice, talk to us today, on 01 6110707.