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Landlord’s Taxes – What do I have to pay?

On a yearly basis there are a number of taxes/levies that you as a landlord are subject to, here are a selection of them:

Income Tax
Assuming that you (and/or your spouse) have other income, either being in employment or self employed, you will be subject to tax on your net rental income. The rates of tax are 20% and 41%, dependent on your income as to which rate will apply to you.

If there is tax payable, then the deadline to pay is on the 31st October. E.g. if you are paying tax for 2010, the deadline to pay is on the 31st October 2011.

Levies – (Income Levy, PRSI & Health Contributions)

The net rental income is subject to all the levies, which have different rates depending on your total income (rates – Levies). These amounts are paid when paying Income tax on the 31st October.

In 2011, the Universal Social Charge replaced the Income Levy and Health Contributions.

Preliminary Tax

This is paying your tax in advance. e.g. you pay preliminary tax for 2011 on the same day as you pay tax for 2010, the deadline for which is the 31st October 2011. The amount depends on how much your tax liability for 2010.

PRTB

This is a requirement when letting to tenants. The current fee is €75 which can be paid on the PRTB website. This is a tax deductible cost for the landlord.

NPPR

In 2010, the NPPR charge was introduced. This applies to property which is not your home (principal private residence). The current charge is €200 which can be paid on the NPPR website.