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Living Abroad - Renting Out Property In Ireland

  • 07-10-2010 9:31pm
    #1
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭


    Guys,

    I've searched the Revenue and Citizens Info sites, but to no avail.

    Before I email a tax advisor - perhaps someone could give me a quick answer.

    I am living outside of Ireland since 6/2/10 and I am earning on a PAYE basis. I also have rental income in Ireland.

    I understand that my PAYE income abroad is not subject to Irish tax, but the rental income is (at least, it is for the next three years or so).

    So how is it calculated? I presume I don't get a full whack of income tax allowances... so is there some reduced allowance (or a nil allowance) for income?

    Any advice gratefully appreciated.


    EDIT: Yes the rental income is PRTB registered, and the agent is deducting the 20% of rental income at source.


Comments

  • #2
    TaxingTimes
    Registered Users, Registered Users 2 Posts: 145 ✭✭TaxingTimes


    You need to get professional advice.
    As a non-resident landlord, your tenants, or estate agent should withhold 20% of gross rent and pay this over to the Revenue, unless you have am "agent" in place registered with the Revenue.

    You calculate your rental profit - gross rents less tax deductable expenses - note mortgage interest relief restricted to 75% of interest paid.

    You will need to file a non-resident return each year - and you will get tax credits equivalent to the % that your Irish taxable income is to your total worldwide income.

    www.taxingtimes.ie


  • #3
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭3DataModem


    Thanks for your post...

    Yes the agent is holding the 20pc back and I am aware of the allowable deductions (interest, expenses, write down, etc). I've made plenty of tax returns in the past incorporating this income.

    My question is not really about rental... just about being a non resident earning income in Ireland. Do I get any personal allowances or anything? Is the whole amount less deductions subject to the top rate of tax?


  • #4
    TaxingTimes
    Registered Users, Registered Users 2 Posts: 145 ✭✭TaxingTimes


    Yes, as I mentioned, you get your personal tax credits apportioned in the amount of your Irish income over your total worldwide income.

    For example - if your rental profit is €1,000, tax at 20% = €200
    Your worldwide income is €50,000
    You may be entitled to personal tax credits of €1,830 x 1,000/50,000 = €37.
    Therefore you pay €200 - €37 = 163

    This is a siplification, as you may also be liable to income levies etc.


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