Moving abroad - Licencee V's Tenant and Tax

Hi All,

First time trying to ascertain this having been offered a job abroad but still within the EU, so i'll be retruning home a few times a year at least. My only income in Ireland will be from my sole property, and I am going to another EU country for working under a PAYE equivilant contract there.

I have a 3 bedroom proerty of which I currently rent out one room under RAR scheme. I am intending to rent out the second bedroom to another lodger. I will be retaining my own bedroom (and an office) for one's return every couple of months, and also for my immediate family members in my absence (both are aware they will be popping in for the odd overnighter at the weekends to keep an eye on the place)

What i'm not clear on from looking at the RTB website - given the initation of my current (and soon to be second lodger) under rent a room prior to my departure while i'm still here - is if they are entitled to Clause 4 / Tenancy automatically if I am a non-resident landlord after six months, EVEN if I am returning occasionaly / my family will be staying in my room and this will be locked so therefore they don't have exclusive use of the entire property?

I understand i'll be moving the tax position from rent a room to a collection agent. On a seperate note - if i'm renting collectivley bewtween the two for 1,100 a month - what's the rough precentage that i'll end up paying to revenue each month? Is it a flat 20%? I'll be requesting split treatment for my PAYE income abroad so the only 'income' i'll have here in Ireland will be from my home.

Thanks all. This is very confusing to me!

You'll need legal advice if you're considering any sort of licence arrangement for while you're away most of the time.

And it'll probably be expensive.

IANAL

irishcandle33 said:

Thanks all. This is very confusing to me!

Click to expand...

Seems to me that you will be non resident and contriving to avoid RTB registration. If the RAR scheme is like HAP then they will deduct 20% automatically once you are no longer in Ireland. Even if it isn't there's also the new rule about prepaying the tax and some collection agents don't want to do it (I met an auctioneer recently and enquired, he said it was too much hassle)

You can't use rent a room if you are not normally living there.

You can avoid RTB registration and retain a license arrangement so long as the written agreements with your licencees is very clear, you actually do restrict them from accessing your bedroom and make use of it. Retaining a room for your personal use is a valid reason to avoid a tenancy, but you do need to be careful it does not appear you are doing so solely to avoid the establishment of a tenancy. Your evidence needs to be unambiguous as the RTB will be the adjudicators in any dispute and they take a very pro-tenant view.

Perfect thanks. Yes this is exactly where i'm coming from and no, both myself and my family members will be making use of the room so it is very much still a licencee agreement.