If you have property in Ireland but live abroad – if you’re a retired expatriate and chose to rent rather than sell your house in Ireland, for example – you’d able to rent your property back home but would have to adhere to certain unique tax stipulations.
As a non-resident landlord in Ireland, filing your taxes can be a tricky prospect.
You will still have the same tax compliancy obligation as a resident landlord, but the unfamiliarity with the laws make make it a slightly more complicated situation.
Nonetheless, there's an upside; you're entitled to exactly the same expenses on your tax returns as a landlord living in Ireland!
In this blog article you can find a list of expenses that could come in extremely handy for landlords who are non-residents in Ireland.
PRTB Registration Fee
In Ireland, if you're renting rooms in your own residence and earning under €14,000 per year (2022) from the endeavour, you aren't obliged to register with the Private Residential Tenancies Board. Obviously if you're living abroad, your rental property isn't your main place of residence, and so this 10k threshold doesn't apply to you and it's necessary to register with the PRTB regardless of how much you earn from rental income.
Of course, registering with the PRTB does come with certain benefits: if a disagreement arises between you and your tenant it will be taken on by the Board, saving you the trouble of dealing with any issues through small claims – something which is especially handy if you're living overseas.
It's €90 to register each tenancy with the PRTB and a capped fee of €375 to register a number of individual tenancies in the same building. Provided you get everything in on time, however, you should have no trouble claiming back these fees as expenses.
Advertising Expenses and Estate Agent Fees
Presumably, you're going to want to advertise your property using a service that won't require you to be physically present while you're trying to attract potential tenants. That's why advertising online will be seen as the best route. Even if you're living abroad and advertising in Ireland (using a service like Daft.ie, for example) or using an estate agent, you're entitled to claim back on any money you have spent publicising your property.
The estate agent is a particularly helpful asset, as it means you have the piece of mind of knowing that your property is being advertised and handled professionally without you needing to be there to sort everything out.
Speaking of having your property run for you...
We have a dedicated tax return service for landlords
Agency and Management fees
Having an intermediary there to manage your property while you're away is something a lot of non-resident landlords elect to do. If you don't want your tenants to have to file your income tax for you, you can elect a Rent Collection Agent (who can either be a professional or a close friend/relative) who is allocated a separate PPS number for dealing with the property, collects the rent, and files your taxes on your behalf. Of course, you can elect a non-professional as your Tax Agent, then do all the preparation for the returns yourself and give said agent the finished return.
Taxback.com could be perfect for you! Our team of Tax Experts will ensure you are 100% compliant with Irish Revenue.
Remember, it could be a lot more expensive if you mess up your tax-filing obligations - so why not just let the experts deal with it for you?!
Repairs and Maintenance
Any money you spend on essential repairs or maintenance can be claimed back on your returns, provided it isn't for capital gain. The element of this that's particularly helpful to you as a foreign landlord is that this covers hired labour, so if you get an external party in to conduct the repairs and maintenance you aren't able to do yourself, you can claim these expenses against your tax.
Legal and Accounting
You can hire a legal or financial professional to help with some of the more administrative elements of renting a property, and any money you spend doing so is tax exempt. For landlords living abroad who might not be familiar with Irish legislation – or who'd be out of the loop with regards to any changes that come into play year-by-year – this can be an extremely useful asset, especially in terms of drawing up rental accounts.
If you're letting property in Ireland but don't live in the State, Taxback.com's Landlord Tax Return service is open to non-residents too. Click here to learn more about our hassle-free returns service.
Why use Taxback.com
Taxback.com will ensure you are fully compliant with your Irish tax-filing obligations.
We'll take care of all of the boring paperwork so that you don't have to!
Our specialised tax return service for landlords will ensure you are given your own dedicated Account Manager who will make sure you are on the right side of Revenue and that you have filed your return before the annual tax deadline for declaring rental income.
Not only will we file the return for you, but we'll make sure you get the maximum rebate you're legally entitled to.