You are considered to be a non-resident landlord if you reside outside Ireland, but have rental property located in the State. As a non-resident landlord, you are still liable to pay Irish income tax on income from rental properties within Ireland and, therefore, you must file an Irish Tax Return each year. The tax year runs in line with the calendar year and is due to be filed by the 31st October of the following tax year.

As a non-resident landlord, there are three options available to you for managing your Irish tax responsibilities:

1. Tenants withholding tax

Your tenants, if paying rent directly to you, can withhold 20% from gross rents and forward this money to Revenue. They then provide you with an R185 at the end of the year detailing how much tax has been withheld. This withholding tax will be held on account for you and can be claimed as a credit upon filing your Income Tax Return.

2. Appoint a Collection Agent.

A Collection Agent is someone who assumes the responsibility of submitting your tax returns and paying your tax liability on your rental properties. The Collection Agent will make an annual tax return and account to Revenue on your behalf for any tax due under the self-assessment rules. The agent appointed does not need to be a professional person – rather, they can be a family member or other trusted person who is prepared to do so.

3. Engage the services of Red Oak Rental Income

Red Oak Rental Income provides Rental Income tax return services for both resident and non-resident landlords. In our experience, a number of clients have highlighted their concerns about both options above with us – be it for cashflow purposes or the fact that they don’t want to burden family members or friends with the responsibility of filing a tax return and paying any tax liability on their behalf.

As one of Ireland’s most prominent tax agents, we recognised this concern and approached the Revenue Planning Department. We suggested to Revenue that if there was no Collection Agent set up and the tenants had not been withholding tax on rents paid, we can proceed to register a non-resident landlord for Income Tax and prepare a return for our client’s rental income. Revenue agreed to this solution and granted us a special dispensation for our clients who fall under this criteria.