Tax while renting house out while abroad

jmw236

I left Ireland 9 years ago when I was made redundant. I own a property in Ireland that has been rented out since we left. I recently came across some posts that say "any landlord living abroad needs to have the tenants pay 20% of the rent as tax or have an agent in Ireland collect it for the landlord". I've never been aware of this. I assume this is so landlords don't getaway with not paying taxes. I have an Irish accountant which who I submit my Irish tax returns as a non-resident every year. I plan on talking to my accountant but is it possible I have a tax bill for the last 9 years?

antoinolachtnai

Talk to your accountant, but no, it is extremely unlikely.

lcwill

As long as you pay the tax due, I don't think Revenue will pursue you for paying it the wrong way.

Not to state the obvious but it is kind of important to be aware of these things.

murphaph

Revenue will not make an issue of this unless you do. The main thing is that the tax due is paid. The worst that will happen is they request you to appoint an agent (check with your accountant that he isn't already fulfilling this role for you) or instruct the tenants to deduct at source and furnish you with a form R185 at the end of the tax year (I'd avoid this if at all possible).

jmw236

That's great !
Thanks very much for your prompt response!

wordofwarning

Your tenants have to deduct the tax, if you don't have an agent authorised to ensure the tax is paid. You have ensured the tax is paid, so there is likely an issue with Revenue

It is a law on the books that AFAIK has never been a case of it enforced ie the tenant is liable for that 20% if they fail to collect it. But Revenue has never gone after a tenant over it

Its one of the most stupid laws every thought up. Tax compliance should be between the LL and revenue and expecting tenants to deduct tax is just bizarre. Especially as tenants often have no way of knowing where a LL lives nor do most care.

murphaph

Emely Mushy Mulberry wrote: »

Its one of the most stupid laws every thought up. Tax compliance should be between the LL and revenue and expecting tenants to deduct tax is just bizarre. Especially as tenants often have no way of knowing where a LL lives nor do most care.

Yep it's bizarre. The UK has the same law BUT as long as you are tax compliant you can request an exemption. Should at least be like this in Ireland although better would be to simply drop this nonsense.