Renting as foreign landlord

Ignacius

Hi All,

my in laws are thinking of buying a house to put as air bnb in Ireland. It is not in an Rpz area.

Do people know the tax they would pay?

How easy is this to do? I looked up citizens advice but seems a minefield. They are Aussie citizens.

Thanks in advance,

Clo-Clo

Google "can i buy a house in ireland if i live in australia"

This pops up

I would suggest getting legal advice as they will need to be involved in purchase anyway

https://www.citizensinformation.ie/en/housing/owning-a-home/buying-a-home/steps-involved-buying-a-home/#:~:text=There%20are%20no%20residency%2Dbased,the%20right%20to%20live%20here.

Ignacius

@Clo-Clo thanks for that. Had looked at that alright. Was just wondering if anybody knew off hand what the tax rate paid would be?

FishOnABike

https://assets.airbnb.com/help/airbnb-pwc-taxguide-ireland-en.pdf

A good link on tax treatment - any letting income would be subject to Irish tax - there is a double taxation treaty between Ireland and Australia so any Irish tax paid would be considered when considering Australian tax liabilities

Clo-Clo

https://www.boards.ie/discussion/comment/121950154#Comment_121950154

I know a guy who was doing it years ago, AirBnB used run events in Dublin on tax etc, not sire if they do anymore

Geuze

https://www.boards.ie/discussion/comment/121950154#Comment_121950154

The rates of income tax in Ireland are 20% and 40%.

thereiver

You appoint an agent in Ireland to collect rent. You appoint an Irish accountant to do your tax returns these expenses can be written off against taxable income . Look on revenue.ie rental income you get tax credits for repairs or upgrades to the house and cost of furniture fridges washing machine etc your liable to pay local property tax ,depending on value of the property keep all receipts for at least 5 years . For expenses or purchase of furniture etc

dennyk

https://www.boards.ie/discussion/2058343984/renting-as-foreign-landlord

There's no legal issue with them buying a property here, regardless of their citizenship or place of residence.

Renting their house out as a short-term rental for more than 90 days a year requires planning permission in an RPZ. While the property they're considering might not be in an RPZ now, there is always a chance it could become an RPZ later, or the short-term-let planning requirements could be extended to cover non-RPZ areas as well, so that is a risk factor that they'd need to consider.

Tax-wise, they will be subject to Irish tax on the income from their Irish property. If they are letting their property on a regular or ongoing basis, it would most likely be considered trading income (and would not be rental income, as they would not be renting to tenants). They'd really need an Irish accountant to help them sort out the tax matters.