# Once landlord becomes non-resident, what tax is due?



## murphaph (10 Jul 2012)

Hi all,
so I'll have been non-resident and non-ordinarily resident for tax year 2012 when I go to do my return next year and I'm wondering about how my tax situation as a non-resident landlord will change.

I know I lose any right to any reliefs (have been able to claim single person and PAYE reliefs up until now as I have PAYE income in another EU state) and I'll be liable to the tune of a straight 20% of my profit.

What I'm not sure about is PRSI and the USC.

Are these also due by non-resident landlords? Can one "opt out" of PRSI? (I pay social insurance contributions in Germany, don't need to keep up paying PRSI in Ireland for a pension etc.). What about the USC, is that liable too?

Cheers.

PS, I did search but found nothing specifically about this.


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## d15ude (26 Jul 2012)

I'd be interested in this, too.

Any links for further reading?


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## facetious (27 Jul 2012)

If you are non resident, the tenant should withhold 20% of the rent and forward it to the Revenue Commissioners.

However, if you have someone acting as agent (either family or an agency), with an address in the RoI then you could just do your tax returns from abroad.

However, it is an obligation of the landlord to provide an emergency contact phone/address and IMHO, one outside Ireland does not fulfil that legal requirement.


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## d15ude (27 Jul 2012)

facetious said:


> If you are non resident, the tenant should withhold 20% of the rent and forward it to the Revenue Commissioners.



eh sorry, but that sounds quite dubious to me.
link to source maybe?


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## PaddyBloggit (27 Jul 2012)

Nothing dubious about it. Some info here:

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21


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## murphaph (29 Jul 2012)

facetious said:


> If you are non resident, the tenant should withhold 20% of the rent and forward it to the Revenue Commissioners.
> 
> However, if you have someone acting as agent (either family or an agency), with an address in the RoI then you could just do your tax returns from abroad.
> 
> However, it is an obligation of the landlord to provide an emergency contact phone/address and IMHO, one outside Ireland does not fulfil that legal requirement.


Sorry but that's not really an answer to my question.

What is the story with USC and PRSI for non-resident landlords? (I have a family member agent to do my tax returns but tbh Revenue don't care about this rule so long as the returns are being done).


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## murphaph (26 Sep 2012)

murphaph said:


> Sorry but that's not really an answer to my question.
> 
> What is the story with USC and PRSI for non-resident landlords? (I have a family member agent to do my tax returns but tbh Revenue don't care about this rule so long as the returns are being done).


To answer my own question, non-resident landlords are not liable for Class S PRSI if their only income is unearned (such as rent). USC is due however, at least I haven't found anything to say it isn't.

Wrt PRSI....would it make any sense for me, having become non-resident (now domiciled, resident and ordinarily resident in Germany) to elect to pay PRSI on a voluntary basis? I paid "full" Class A PRSI for ca. 11 years (1998-2009) before leaving Ireland. Should I opt to pay Class S PRSI on my Irish rental income now to "preserve" my Irish state pension entitlements? (I'm 34 now).


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## sunnydonkey (28 Apr 2013)

Just coming back to this thread as i've just completed my 2012 declaration on ROS and I see that the Revenue calculations do deduct PRSI at 4% of the profits (as well as tax and USC). 
Firstly is this correct and if not how do I go about contesting it? 
On the other hand if PRSI is due might it entitle me to anything if I did retire to Ireland in a few years?


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## Bronte (29 Apr 2013)

murphaph said:


> USC is due however, at least I haven't found anything to say it isn't.
> 
> .


 
As a non resident landlord myself you are correct about the USC being due.  I'm not sure about the PRSI yet though.


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## nbc (22 Oct 2013)

*Prsi non resident*

Again I'm in the same situation. Prsi payment seems to be too complicated as very few answers. Again I paid it on rental income last year although a non resident. Is this correct? Will it confer pension rights? Is USC due by me also? I assume both will be due as government need to get as much out of anyone who can pay? 
Nbc


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