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Moving Overseas - renting out our home

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  • 04-03-2021 11:05pm
    #1
    sReq | uTeK
    Registered Users Posts: 6,003 ✭✭✭


    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). 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.


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    #2
    ari101
    Registered Users Posts: 2,835 ✭✭✭ari101


    Deloitte have a nice pdf explaining residence, ordinary residence (3 year rule) and domicile at this link:

    https://www2.deloitte.com/ie/en/pages/tax/articles/moving-abroad-irish-tax-guide.html

    Tax for 2021 runs for calendar year to 31 Dec, with filing deadline is 31 Oct 2022 (it's usually second week of November with online filing actually). So tax on rent for Jun-Dec 2021 would be declared 31 Oct 2022 along with any other items for 2021.

    Not my specialist area but, if you were not living here and moving your permanent domicile abroad, might be worth checking if you need an irish collection agent nominated to revenue re this property before you start renting while abroad? If you are fully non-resident this is the case.

    Also if you are not already in the file and pay self assessment system be aware if/when prelim tax may be due. Usually in first year there is no prelim tax, but in second and subsequent years it must be paid when filing the previous year. I.e. In Oct 2022 you may be expected for pay prelim tax for 2022 as well as settle 2021 bill. If you are only ordinarily resident, and not resident and domiciled here, that might be different?

    Those 2 later items should be confirmed expanded on by someone else with more knowledge than me! :)


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