{"id":12245,"date":"2024-07-04T08:00:26","date_gmt":"2024-07-04T00:00:26","guid":{"rendered":"https:\/\/www.infinitysolutions.com\/?p=12245"},"modified":"2024-07-03T15:38:05","modified_gmt":"2024-07-03T07:38:05","slug":"irish-non-resident-landlords-in-asia-are-you-aware-of-your-tax-obligations-in-ireland","status":"publish","type":"post","link":"https:\/\/www.infinitysolutions.com\/blog\/irish-non-resident-landlords-in-asia-are-you-aware-of-your-tax-obligations-in-ireland\/","title":{"rendered":"Irish non-resident landlords in Asia: Are you aware of your tax obligations in Ireland?"},"content":{"rendered":"

If you are an Irish non-resident landlord, you should be aware of recent changes to the laws governing rental income in Ireland. Find out about Ireland\u2019s new Non-Resident Landlord Withholding Tax (NLWT), temporary tax relief for landlords, and vacant home tax. It\u2019s essential you understand your tax liabilities and obligations and ensure you are compliant.\u00a0 <\/em><\/p>\n

Changes to Irish laws on rental income for non-resident landlords <\/strong><\/h2>\n

If you are resident in Asia and you rent out a property in Ireland, you are classed as a non-resident landlord. You must declare this income to the Irish tax authorities and you will be liable for tax on it.<\/p>\n

Individual landlords are taxed at 20% if income is under the \u20ac42,000 threshold. Above that, the rate is 40%.<\/p>\n

Universal Social Charge (USC) is also taxed on income above \u20ac13,000.<\/p>\n

Pay Related Social Insurance (PRSI) does not apply to non-resident landlords.<\/p>\n

Don\u2019t forget that most rental properties should be declared with the Residential Tenancies Board<\/a> (some exemptions<\/a> do apply).<\/p>\n

A major change to the law was announced in the Finance Act 2022. Aimed at tightening tax laws for landlords based abroad, it came into force on 1st<\/sup> July 2023 with the introduction of Non-Resident Landlord Withholding Tax. It is important that you make yourself aware of this relatively new tax and ensure that you are fulfilling your tax obligations.<\/p>\n

Ireland\u2019s new Non-Resident Landlord Withholding Tax (NLWT)<\/strong><\/h2>\n

The new legislation introduced a Non-Resident Landlord Withholding Tax (NLWT).<\/p>\n

Since 1st<\/sup> July 2023, tenants and collection agents are required to withhold a portion of rent from their non-resident landlord each month and pay it directly to the Revenue via a dedicated NLWT platform which can be accessed via the Revenue Online Service or myAccount. This is called a Rental Notification (RN).<\/p>\n

Whereas previously collection agents and tenants could file a tax return with Revenue on behalf of a non-resident landlord, this is no longer the case.<\/p>\n

In order to encourage compliance, all non-resident landlords must now file an income tax return annually in order to reclaim any withheld credits they are entitled to.\u00a0 This is done using Form 11<\/a>.<\/p>\n

The filing deadline for non-resident landlords is 31st<\/sup> October, or mid-November if you declare online. Failure to declare by these dates could lead to fines and late payment penalties.<\/p>\n

The full process is outlined here<\/a>.<\/p>\n

Deductible expenses for Irish non-resident landlords <\/strong><\/h2>\n

 <\/p>\n

You can claim certain expenses against your income to reduce your tax liability. These include local authority rates, ground rent, insurance premiums, etc. You will find a comprehensive list here<\/a>. You may also be able to claim Mortgage Interest Relief<\/a>. Make sure you keep accurate records and copies of all receipts and invoices.<\/p>\n

Residential Premises Rental Income Relief (RPRIR)<\/strong><\/h2>\n

In addition, to ease the current housing crisis, the Irish government announced a temporary tax relief<\/a> for landlords in the 2024 Budget. To benefit from this relief on a portion of rental income at a standard rate of 20%, landlords must keep their property in the rental market for four years. Between 2024 and 2027, landlords who comply can claim 20% of:<\/p>\n