renting property while abroad

dev_ire

Hi,

am I right in thinking that I pay 20% of my income from rental in tax if I work and live abroad?

Or does it depend on how much I earn abroad?

Also I would pay 5% to an agent?

4ensic15

dev_ire wrote: »

Hi,

am I right in thinking that I pay 20% of my income from rental in tax if I work and live abroad?

Or does it depend on how much I earn abroad?

Also I would pay 5% to an agent?

The simple answer is no.
The tenants are obliged to deduct tax at standard rate and pay it to revenue. The actual tax bill may be higher or lower depending on your overall income and the level of deductions available.
AN agent will likely charge 10% for let and management. 5-6% for let only. It is all negotiable and some are charging more.

dev_ire

Thanks but just my foreign income come into play?

Or is it 20% tax that the agent would handle and then the 10% agent fees?

4ensic15 wrote: »

The simple answer is no.
The tenants are obliged to deduct tax at standard rate and pay it to revenue. The actual tax bill may be higher or lower depending on your overall income and the level of deductions available.
AN agent will likely charge 10% for let and management. 5-6% for let only. It is all negotiable and some are charging more.

Michael D Not Higgins

dev_ire wrote: »

Thanks but just my foreign income come into play?

Or is it 20% tax that the agent would handle and then the 10% agent fees?

You need an accountant. Without knowing the full details of your situation it would be difficult to give a proper steer.

ted1

4ensic15 wrote: »

dev_ire wrote: »

Hi,

am I right in thinking that I pay 20% of my income from rental in tax if I work and live abroad?

Or does it depend on how much I earn abroad?

Also I would pay 5% to an agent?

The simple answer is no.
The tenants are obliged to deduct tax at standard rate and pay it to revenue. The actual tax bill may be higher or lower depending on your overall income and the level of deductions available.
AN agent will likely charge 10% for let and management. 5-6% for let only. It is all negotiable and some are charging more.

That’s oy if the tenant is paying into a foreign account.

Victor

dev_ire wrote: »

am I right in thinking that I pay 20% of my income from rental in tax if I work and live abroad?

This will depend as much on the tax regime where you live as anything else, e.g. the UK and Ireland tend to tax those living in the other more closely than people living elsewhere.

whomitconcerns

ted1 wrote: »

4ensic15 wrote: »

dev_ire wrote: »

Hi,

am I right in thinking that I pay 20% of my income from rental in tax if I work and live abroad?

Or does it depend on how much I earn abroad?

Also I would pay 5% to an agent?

The simple answer is no.
The tenants are obliged to deduct tax at standard rate and pay it to revenue. The actual tax bill may be higher or lower depending on your overall income and the level of deductions available.
AN agent will likely charge 10% for let and management. 5-6% for let only. It is all negotiable and some are charging more.

That’s oy if the tenant is paying into a foreign account.

Nope that's in all cases where you have a non resident landlord. Doesn't matter where the bank account is.

In saying that would I feel comfortable paying rent to a foreign bank account? Probably not.

vandriver

whomitconcerns wrote: »

Nope that's in all cases where you have a non resident landlord. Doesn't matter where the bank account is.

In saying that would I feel comfortable paying rent to a foreign bank account? Probably not.

In ALL cases?
Are you sure?
Or is this something you half remember and state as fact here?

vandriver

Where rents are paid directly to a person whose usual place of abode is outside the
State, the tenant is obliged to deduct income tax at the standard rate from the
payment (section 1041 TCA 1997). The tenant then gives the landlord a certificate of
the tax deducted on Form R185 (Certificate of Income Tax Deducted). The landlord is
entitled to claim relief for expenses which are usually allowed in arriving at the
rental profit and may be entitled to a proportion of personal allowances. Note: For
the purposes of section 1041, payment into a bank account in the name of the
landlord is payment directly to the landlord.
Where rents are paid to a person whose usual place of abode is in the State, for
example to an Irish based estate agent acting on behalf of a non-resident landlord,
the tenant is not obliged or entitled to deduct income tax. The non-resident landlord
is chargeable in the name of the Irish agent. The Irish agent is not entitled to deduct
tax from the rent on payment to the landlord but may retain a sufficient portion of
the rents to satisfy the tax payable on the rents (section 1046(2) TCA 1997). The
agent should not issue a Form R185 to the landlord.

whomitconcerns

vandriver wrote: »

In ALL cases?
Are you sure?
Or is this something you half remember and state as fact here?

Well its not something I am as passionate about as evidently you are ....but here you go

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-45/45-01-04.pdf

vandriver

whomitconcerns wrote: »

Well its not something I am as passionate about as evidently you are ....but here you go

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-45/45-01-04.pdf

This is reproduced in my last post.
Well,not all of it,just the bit that shows you should do a bit of research before posting.

whomitconcerns

vandriver wrote: »

This is reproduced in my last post.
Well,not all of it,just the bit that shows you should do a bit of research before posting.

Sorry, but i must be getting old. Your post is the same as my post and still proves the point I was making. If you are paying rent to a non resident landlord you always deduct the 20% irregardless of where his bank account is.

I am guessing you are alluding to a situation where you pay your rent to an agency based in Ireland, in this case they are paying the landlord you are paying them. Since you are paying them and they are "resident" then you dont deduct the money..

Anyway...not a passion of mine, was just correcting the post from ted1.

dev_ire

Ok thanks everyone.