If a person is not resident here for tax purposes and rents out a property in Ireland they are obliged to make tax returns in respect of the rents earned from the property to the Irish Revenue. This situation can also arise when somebody is working abroad for a few years and lets out their property while away. Tenants of non-resident landlords are supposed to deduct tax from rents paid to the non resident landlord. The Revenue may instruct them to do so. This will not apply if you have appointed an Agent to collect the rents on your behalf and they accept responsibility for paying over whatever tax is due to the Revenue. If the property is sold the non resident owner is liable for Irish Capital Gains Tax on any profit made. A credit for tax liabilities paid in Ireland in respect of the property may be allowed in the country where the landlord is tax resident if Ireland has a Double Taxation Agreement with that country. Assuming the non resident landlord’s only source of income in Ireland is the rental income from the property the completion of the tax return form is relatively straightforward. A rental income account must be prepared for the property. Our Rental Income Calculator will do this for you.
At present a tax return must be submitted to the Irish Revenue by the 31 October following the end of the tax year and your preliminary tax, if any due, paid by the 31 October during the year.
Tax year ended 31/12/2014
Preliminary tax payment due 31/10/2014
Tax return due 31/10/2015
Balance of tax due 31/10/2015
Preliminary tax for 2015 due 31/10/2015
If a taxable rental profit arises on your Irish property you will be liable for income tax but not PRSI on the profit. You will not be allowed any personal tax free credits or allowances because you are not resident here for tax purposes. For the tax year 2014, the first €32,800 of your rental profit will be taxed at 20% and anything over this at 41%. For the tax year 2015, the first €33,800 of your rental profit will be taxed at 20% and anything over this at 40%.