Retiring Abroad

homingbird

Looking for advice if i retire to another EU country & my only income is from a company paying me rent the taxman will ask them to pay my tax owed before paying me as i am living abroad as i seen this said in some other thread here cant remember which one though.

dennyk

If you are letting an Irish residential property while residing abroad and you aren't using an Irish-based agent to collect your rent and handle your taxes for you, then the tenant would need to deduct 20% of that rent and remit it to Revenue on your behalf. However, that 20% might not be your full Irish tax liability, so it's possible you might owe additional Irish taxes. You will also have to file an Irish tax return yourself if you aren't using an agent to handle your rental taxes, even if you have no other Irish-based income.

Also note that if you were previously tax-resident in Ireland, you will remain "ordinarily resident" in Ireland for the next few years, and you may be subject to Irish tax on any of your non-employment-related income, even if it doesn't originate from Ireland. As such, if you also have investment income, pension distributions, etc. that would be subject to Irish tax, you might have to pay Irish tax on those for your first few years living abroad.

Jim2007

You also need to look at it from the other side as well, for instance you do not have a right to retire to another EU/EEA/CH state unless you meet their financial requirement criteria. In some countries being a landlord is considered a business and does not qualify as retirement income.

Also if your income is 100% Irish you don’t have access to their healthcare services as the HSE remains responsible for you, so you need to see what cover they offer and if you need to take out Irish private insurance and so on.

homingbird

https://www.boards.ie/discussion/comment/119665835#Comment_119665835

Dont they the tenant break the contract with me if they dont pay the full amount agreed with me & leave themself open to eviction so i cant see that happening so its totally up to me to sort the tax out.

vegandinner

Really depends where you retire to, if you become resident and ordinarily resident there and if they have a double taxation treaty. Lots of variables, get professional advice.

Taxes

https://www.boards.ie/discussion/comment/119667622#Comment_119667622

Good luck with that…..

dennyk

https://www.boards.ie/discussion/comment/119667622#Comment_119667622

No, the tenant is required by law to withhold 20% of their gross rent payment and remit that to Revenue under those circumstances. Complying with that law does not mean they are in arrears on their rent, and you could not terminate their tenancy for that reason. If they fail to withhold when they are required to, they are actually overpaying their rent, and once Revenue comes after them for that 20% they didn't withhold, your tenant will come after you to recover that money anyway. The reason it's done that way is that it's easier (and cheaper) for Revenue to pursue the party who's actually living in Ireland for the unpaid rent, rather than chasing down some landlord living overseas.

It would probably be better to avoid the issue entirely by having an Irish agent collect your rent and manage the taxes for you, that way your tenants wouldn't have to bother.