Tax on rental income for non-residents

S

salut

Guest
Hello,

We have recently moved countries and are now non-resident for tax purposes. We want to rent our my apartment as we are no longer living in it. I understand the method for calculating rental profit/loss however I'm not sure of the following:

a)What will the tax rate be on the rental income?
b)We bought as owner occupiers but now our status will change as we'll become landlords. Are we still entitled to mortgage interest relief?
c)Do I need to notify the revenue in the country i'm living in now that I am earning rental income in Irl?

Any other tips about renting out an apartment would be much appreciated.

Thanks, Salut
 
a) If the tenant is paying you directly, he must deduct tax at the standard rate and pay over to the Revenue. This is available as a credit against your final tax liability. The rate will depend on how much profit you make, and what tax credits you have.

b) You would not be entitled to mortgage interest relief, but can deduct 75% of the interest paid as an expense against your rental income.

c) Would depend on the rules of that country; some do tax residents on world-wide income, others not.
 
If possible, appoint an agent to act on your behal with the Revenue - you can then receive the rental income gross.

You could appoint a friend or family member.

You will need to prepare a tax return each year (or your agent will), and tax will be payable based on your profit each year, with Preliminary tax also payable.

As a non-resident your tax credits will be given in proportion to your Irish income over your worldwide income.

What country are you living in?

If you need any more help PM me.
 
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