Tax on Rental Income non-resident.

mmurph85

New Member
Messages
7
Can someone please let me know if I'm correct.

I have a house and want to rent it out for maximum one year. I want to rent it for €18,000 total for the year. I am abroad and am a non resident in Ireland. My tenants should deduct 20% from what they pay me. I will use a property management company to deal with this. Property Management will take 10% to deal with the property on my behalf.

Income: €18,000
Tax: €3,600
Management Fees: €1,800
Net Rental Income: €12,600.

I know this is a very basic calculation but am I missing anything major here? What can I do to reduce my tax bill?

Rental Income:​
€18,000.00​
Expenses:
Repairs​
€500.00​
Management​
10.00%​
€1,800.00​
PTRB​
€90.00​
Accountancy​
€200.00​
Miscellaneous​
€500.00​
Depreciation on Furniture, Fixtures & Fittings​
€500.00​
Total:
€3,590.00
Taxable Profit:
€14,410.00
20% income tax​
20.00%​
€2,882.00​
Profit:
€11,528.00
LPT​
€495.00​
Net Profit:
€11,033.00

As a non-resident I'm not liably for PRSI or USC, so it's a flat 20% charge on rental profit. LPT is not tax deductible. Are these figures correct?
 
Last edited:

Nutso

Frequent Poster
Messages
508
If you have a management company dealing with the rental income, you should have the tenant pay the full amount of rent to them (not deduct the 20%). If your agent is based in Ireland, there is no requirement for the 20% to be deducted by the tenant. I would have zero confidence in a tenant deducting the rent and paying it to the Revenue on my behalf. Your agent can make this payment for you if you prefer to have it paid in advance.
 

Setanta12

Frequent Poster
Messages
1,093
To be clear, the 20% of Gross rents is different than the 20% in net profits.

Any mortgage interest paid in the year under review?

Have you thought about Preliminary Income Tax in year 1, and cash-flow?

I forget - are non-residents entitled to some fraction of personal credits for rental income?
 
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