Regardless of where you live, rental income from an Irish property will always be subject to Irish tax. If a “non-resident landlord” does not register a collection agent with Revenue, then the tenant must deduct the standard rate of income tax (currently 20%) from the gross rent payable and pay it across to Revenue. At the end of the tax year, the tenant must give the landlord a certificate showing that the tax has been accounted for to Revenue. The landlord then has to file tax returns to show their net rental income, (i.e. gross rents less any rental expenses e.g. mortgage interest, repairs, insurance) and claim the amount of tax deducted by the tenant as a credit.
Where the non-resident landlord does have a collection agent, the tenant can pay the rent without deduction of income tax. The collection agent is then chargeable to tax on the net rent as agent for the landlord and must submit an annual tax return and account for the tax. The agent appointed can be a family member, estate agent, auctioneer or any other person prepared to take on the responsibility and who undertakes to make annual tax returns and account to Revenue for any tax due.
Sale of Property
If at some future date you sell an Irish property whilst you are still abroad, and are fortunate enough to make a gain on the sale, that gain will be subject to Irish Capital Gains Tax. It may also be subject to foreign tax.
This article is intended solely to highlight some tax implications of emigration and should not be relied on as a substitute for seeking professional advice. For further information contact McLaughlin McGonigle, St Helens, St Oran’s Road, Buncrana, Co. Donegal. Tel +353 (0)74 9321420 / Fax +353 (0)74 9321421/ firstname.lastname@example.org
Authorised to undertake investment business services in Ireland by the Association of Chartered Certified Accountants.