Tax Relief for Tenants where Landlord lives outside of Ireland

gagalina

Hey Guys,

does anybody know more about this:

http://www.oasis.gov.ie/housing/renting_a_flat_or_house/tax_relief_for_tenants.html

My landlord lives in Germany and I pay them gross rent per month of 500 euro. (500 euro x 20% = 100 euro). I now deduct 100 euro from the gross rent I pay (500 euro - 100 euro = 400 euro). My rent therefore is 400 euro per month.

If you are a PAYE employee and are paying rent to a landlord living outside Ireland, you account for the tax you deduct by applying for a tax allowance and completing Form Rent 1 (see how to apply). If you pay tax by self-assessment, you account for the tax you deduct in your notice of self-assessment which you send to Revenue. Failing to deduct tax from rent you pay to a landlord living outside Ireland will mean that you (and not the landlord) will be liable for any tax which should have been deducted.



My Landlord lives in the US, and I am bit worried here. What exactly do they mean that I am liable for the tax that should have been deducted?


many thanks
Gagalina

Hitchhiker's Guide to...

think you'll get better feedback in this business forum - so i've moved it here...

gagalina

bump ;-)

nobody at all with any info?

thx,

Gagalina

antoinolachtnai

Yup, it is up to you to withold the tax the landlord owes and remit it (i.e., write a cheque for it) to the revenue. You should ring the revenue or your accountant about this right away if you are in doubt. If you have paid a couple of months rent already, it might get interesting, because you may find you're going to have to tell his lordship that his rental income is going to be taking a holiday.