Prsi For Non resident Landlords

handlemaster

Do Non resident Landlords pay PRSI on rents received ?
what classifies as a non-resident landlord i.e. time period out of the country ?

lcwill

Hope its ok to re-open this thread.

Apparently the answer is yes - non-resident landlords pay PRSI on rent.

My accountant has just told me I have to pay PRSI contributions for 2015, even as a non-resident landlord, and despite the fact that I am making social insurance contributions on earned income in the other EU state where I am tax resident.

I thought I could only pay into one EU social insurance system at a time?

ray2016

Hi

I'm reopening this as I'm having the same problem. Most EU states have double taxation treaties which mean u don't have to pay tax in 2 EU states. I'm paying tax and PRSI in Ireland on rental income and I need to know if this entitles me to an S1 certificate.

paul71

No a non resident is not required to pay PRSI but has an option to do so.

lcwill

I asked my accountant to ask revenue about this, as I was also paying social insurance in another EU country and they then decided I didn't have to pay with the reason being that you should only pay into one EU social security system at a time....

Bubbaclaus

lcwill wrote: »

I asked my accountant to ask revenue about this, as I was also paying social insurance in another EU country and they then decided I didn't have to pay with the reason being that you should only pay into one EU social security system at a time....

Revenue are correct. And you need to move accountant. That is a pretty basic thing to know as an accountant and I would worry about what else they are getting wrong.

ray2016

Thought I would post and update on this...
As previously mentioned - you should only pay social security (aka PRSI) in one EU state and that should be the state where you live. In my case, I am liable for tax on rental income in Ireland but - as I do not live in Ireland - I am not liable for PRSI there. Instead I should pay social security in France where I live. So I will pay income tax in one EU state (where the income is generated) and pay social security in the state where I live. This is how it works under EU rules. 
However, to avoid having a disruption in my state pension contributions I can make optional PRSI payments of 500 euros per year to keep my pension up to date. This will only be counted towards pension and I cannot derive any other social security benefits from it. I had to call the dept of social security to confirm all of this as the info was not easily available. That's why I'm sharing here.

lcwill

Thanks for the update. Can I ask what class of PRSI contributions that will be? Will the 500€ count as a year of self employed contributions? I had understood that if I had paid PRSI on rental income in Ireland while living abroad it wouldn't count towards any benefits at all - not even pension.....

ray2016

The class depends on the last class that you were paying. They are called "voluntary contributions" if you look it up on welfare.ie or citizensinformation.ie you will get all the info.

handlemaster

I think you have to do it the year after you leave the country or you çant do it.

ray2016

you have to pay the voluntary cobtributions within 60 months of paying your last contribution. unless the rules are different for non residents??

there are also restrictions on who can pay voluntary contributions. you have to have already paid a certain amount of contributions, check welfare.ie for details