Moving to UK while renting Irish home

gggg

Hello there

Scenario:

I aim to move to the UK next year from Dublin where I have lived for a few years. I own a home in Dublin which is mortgaged. Given that house prices are rising in Dublin (and that I would get a decent rental yield) I would like to rent my house while living in the UK.

Question:

Am I supposed to pay any tax on the rental income in Ireland?

Thanks

GGGG

Mr. Incognito

Yes.

See a professional for advice

gggg

thanks..

Even if not working in the UK; are you really expected to pay tax on rental income in Ireland? I will check out further so.

GGGG

dharma200

If you live out of the country the tenant can be liable for tax... It is complicated so definately seek advice...

gggg

Thanks, but for what tax would the tenant be liable?

Mr. Incognito

Irish property means irish tax regardless of where you live.

Arbiter of Good Taste

gggg wrote: »

thanks..

Even if not working in the UK; are you really expected to pay tax on rental income in Ireland? I will check out further so.

GGGG

Of course you are expected to pay tax in Ireland. You have an Irish source of income (rental).

dharma200

gggg wrote: »

Thanks, but for what tax would the tenant be liable?

If you are out the country then it can be made the tenants liability to pay the tax on the income you receive...
Have a read of this http://www.revenue.ie/en/tax/it/leaflets/it70.html

And this What If Your Landlord Is Not Resident In The State?

If your landlord resides outside the Republic of Ireland (the State) and you pay rent directly to them or to their bank account either in the State or abroad, you must deduct income tax at the standard rate of tax (currently 20%) from the gross rents payable.

Failure to deduct tax may leave you liable for the tax that should have been deducted.

Example

Gross Rent per month €1,000
Deduct tax €200
Pay to Landord €800

At the end of the year, you must give a completed Form R185 (PDF, 237KB)* to your landlord to show that the tax has been accounted for to Revenue. The landlord can then claim this amount as credit on their annual Tax Return.

Where the non-resident landlord has an agent, who is resident in the State collecting the rent, you should pay the gross rent to the agent without deduction of income tax.

The agent is then chargeable to tax on the rents as Collection Agent for the landlord and is required to submit an annual tax return and account for the tax due under Self-Assessment. Leaflet IT10 - Guide to Self-Assessment provides more detailed information.

Note: The agent appointed need not be a professional person, e.g.. they can be a family member or other person prepared to take on the responsibility and who undertakes to make annual tax returns and account to Revenue for any tax due.

*(Also available from Revenue’s Forms and Leaflets Service at LoCall 1890 306 706 (ROI only) or +353 1 7023050 or from your local Revenue office).

For additional information please refer to Part 45.1.4 (PDF, 40 KB) of the Income Tax, Capital Gains Tax and Corporation Tax Manual.

Marcusm

A non resident landlord with a debt encumbered property is better off appointing an Irish agent (can be a family member) to receive the rent to improve cashflow. The agent need not have any responsibilities for the property other than receiving the rent and discharging any resulting tax obligations, i.e. they don't need to get involved in maintenance etc.