Quick Question re: non resident rental

savemejebus

Registered User
Messages
12
Hi, I'm very bad with regards to tax knowledge and am hoping that someone here may be able to give me a little help with this question before i go to revenue.

I'm planning on moving abroad (within the EU) for a couple of years and will be renting out my house to cover the majority of my mortgage repayments. While I am abroad my only income within Ireland will be this rental income and i'd imagine that it will come in at below €9000.

What would my income tax liability be on this sum? I've read that it would normally be 20% but as it'll be my only source of income will i be able to put my tax credits against this? Thanks for any help ye can give
 
Tax Credits:
As a non resident you will be entitled to the proportion of tax credits that your assessable Irish income bears to your total worldwide income. Therefore if your foreign income is high, your tax credits will be low.

Tax Bands:
You will get the normal tax bands, and therefore based on above expect to pay 20% of your net profits (income less tax deductable expenses)

Mortgage Interest:
You will only receive a credit of the interest you pay on your mortgage if you are registered with the PRTB.

Tax Return:
As a non-resident landlord you will need to file a return every year.

Agent:
Unless you appoint an agent to act on your behalf (an Irish resident friend or family member will do) the tenant is obliged to withhold tax of 20% of the gross rents and pay this over to the Revenue. To remain tax compliant I would suggest that you appoint an agent. If you do so your agent will receive a new PPS number, and will file tax returns on your behalf as "XXX, agent for XXX"