Tax on rental property if moving abroad

Lizardlegz

Hi All,

Apologies if I use any incorrect terminology, tax is not my strong point.

Anyway, we are both Irish Citizens making the move to New Zealand end of May. We had looked at renting out our home and all websites such as taxback.com etc stipulate we are liable for 20% tax on the gross rental and classified as non-resident landlords.

However, upon talking to our accountant today, they said we would still be classed as a resident landlord rather than a non-resident landlord for 3 years (apparently, she said it takes 3 years to lose your resident tax status) classed as “ordinarily resident”. I can't see anything like this on revenue, of course this has implications in terms of tax on the property increasing significantly from 20% to 40%.

Furthermore, If we are renting out say 1st of June 2021, do we have to declare the rent 2021 from June until October 31st + our income or do we wait until next year.

I hope I've explained this correctly.

Thanks in advance for any feedback.

Caranica

There appears to be a confusion there. Non resident landlord tax is not 20%, it is the same as resident landlord tax. If you're non resident, your tenants can pay 20% of their rent to to Revenue and that is credited against your tax bill. The alternative is you appoint a collections agent (can be a friend/family or a professional) for your rent and they pay your tax bill.

Baby01032012

The 20% is what the tenant is required to withhold from rent they pay you or if you appoint a tax agent they withhold the 20% this is paid to revenue and is a tax credit against what ever your tax liability.

Your accountant is correct. You are still ordinarily resident for 3 years after you leave Ireland that means you are subject to Irish tax on your world wide income so 40% plus usc and Prsi. There is a tax treaty between Ireland and New Zealand so you will get a tax credit for any tax paid in New Zealand.