Tax implications of renting out a house in ireland while living abroad

My mother died this year and left the house “of which she was sole owner” to myself and my two brothers. We now have an offer to rent the house to a corporation for their contractors.

I live abroad, so does one other brother.

The rental income will be 21600 annually Split equally three ways.

from reading online If the amount of profit is over 5000 you are a chargeable person. My profit will be 7200 I assume, unless there are other things to factor in such as property tax.

My questions surround am I likely to pay 20% or 40% tax on the rental income/profit.

as I live abroad I have no other income from Ireland.

In regard to my brother living in Ireland what kind of conditions would be met to make a person available for the higher rate of 40%?

Does it sound like we would be in different tax bands and so I should organize the share of the rent to be paid to each of our brothers accounts or, as has being suggested By my brother, we have the total amount paid to our father and he divided the money out while keeping 40% to settle tax. It doesn’t sound like a good idea to me.

appreciate this question may need to be answered by an accountant but any help or pointers I’d be grateful for..

Also probate has been approved but our name wouldn’t be on the deeds yet. Not sure we could run into issues with that .

If the gross rental income is 21600 that is not the profit - there will undoubtedly be some costs associated with the renting of the property

It doesn't matter who gets the rent - as the owners, you would be liable to tax on the income

What do you mean by what kind of conditions would be met to make a person available for the higher rate of 40%

From what I understand there are two bands of taxes on rental income- 20% and 40%. how do I know which I will end up paying?

There's different bands but residency is important. For non resident landlords I thought it was always 20%?

The first € 35,300 of income is taxed at 20% anything over at 40% - single person

I don't think residency matters to the tax rates and bands but I could be wrong

jpd said:

The first € 35,300 of income is taxed at 20% anything over at 40% - single person

I don't think residency matters to the tax rates and bands but I could be wrong

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Thanks, it was strangely hard to find that out on the internet which made me think it was an extremely complicated and not cut and dried tax bands.

20% must be paid directly by the tenant to Revenue in certain circumstances, but that does not alter the amount of tax the landlord will ultimately have to pay, which is determined in the normal way.