Essential information for overseas landlords with property in Ireland
Landlords living overseas who rent out properties in Ireland will soon have to change their rent collection and tax declaration practices to avoid facing penalties and sanctions from Revenue.
Revenue are now enforcing a rule whereby foreign landlords must either instruct their tenants to withhold a portion of rent which will be paid to Revenue, or alternatively the property owner must hire a rent collection agent.
While this development may be unwelcome for many overseas landlords, help is on hand...
Here we take a closer look at rent collection agents and how non-resident landlords can manage their property tax obligations in Ireland.
What is a rent collection agent?
A rent collection agent is an Irish resident who manages the collection of rent payments.
If you are a non-resident landlord you can choose to appoint an Irish Rent Collection Agent – such as Rentax by Taxback.com – to manage your tax responsibilities. Rentax will even submit your income tax return for the rental income on your behalf.
How does it work?
When a nonresident landlord signs up for one of our services, we will be issued with a separate PPS number on behalf of that landlord. If required, we will manage the collection of rent, prepare and file the tax return. Rentax can make an agreement with the landlord to retain a portion of the rent to cover the annual tax liability and preliminary tax due for the following year.
Other services include:
- Annual Property Tax Return Filing
- Capital Gains Tax Filing
- Tax Consultancy Service
- And more
What happens if you don't use a rent collection agent?
For non-resident landlords, there are two choices. Either, your tenants deduct the standard 20% income tax from their monthly rent and pay it to Revenue on your behalf or else you can use a rent collection agent.
Should you choose the first option, once the tenancy has been agreed upon, you or your tenant must contact Revenue to make arrangements for where your income tax is payable. The tenants must fill out a Form R185 at the end of each year to show how much was withheld for tax payments that year, and send this to you for your records.
This practice puts an onus on your tenants to ensure they are calculating the tax correctly. Of course, this leaves room for human error to occur! It is also a responsibility that the tenant would not have if they were renting from an Irish resident.
Why do overseas landlords need a rent collection agent?
To put it simply, rent collection agents make life easier for landlords living overseas. You won't have to worry about guaranteeing your own tax compliance as we will do the work for you. Now that Revenue are cracking down on overseas landlords, rent collection agents are the safest and easiest option to choose for you and your finances.
What can Rentax do for you?
Rentax are here to provide rent collection services to non-resident landlords and property investors in Ireland.
By using Rentax you will save time and stress, leaving room for the important things in life. Rentax will take care of the below to ensure you are 100% Revenue compliant:
- Registered rent collection agent for non-resident landlords
- Managing of tax withholdings on monthly rental income (optional)
- Filing of annual self-assessed income tax returns
Rentax makes rental tax compliance easy, all through a simple online process. Our users will have a Personal Tax Advisor that will manage your Irish tax requirements.
Why choose Rentax?
- Vast experience in the world of tax
- We have been the Irish tax experts for over 25 years!
- End-To-End Process Management
- Our tax experts will manage the entire process from start-to-finish – guaranteeing you are 100% tax compliant
- Quality Service
- Our ISO 9001 certification is an external validation of our strong commitment to quality, our customers, partners and staff. The certification also gives you the peace of mind that we are committed to providing a secure, quality service set out to the highest standards.