{"id":12015,"date":"2024-02-21T12:15:52","date_gmt":"2024-02-21T10:15:52","guid":{"rendered":"https:\/\/seoblog.taxback.com\/?p=12015"},"modified":"2024-12-19T12:00:50","modified_gmt":"2024-12-19T10:00:50","slug":"how-to-declare-rental-income-ireland-as-non-resident-landlord","status":"publish","type":"post","link":"https:\/\/www.taxback.com\/blog\/how-to-declare-rental-income-ireland-as-non-resident-landlord\/","title":{"rendered":"How do I declare rental income in Ireland as a non-resident landlord?"},"content":{"rendered":"

If you are residing abroad and earning rental income in Ireland, you must file a tax return and declare your income to Revenue. There are also specific rules you must follow when collecting rent from your tenants.<\/p>\n

So how can you ensure you are fully tax-compliant in Ireland and claim all of your tax entitlements?<\/p>\n

If you have some queries regarding your Irish tax responsibilities you have come to the right place! Here, in this guide, we\u2019re going to answer some of the most commonly asked questions we receive from overseas landlords each day<\/strong>.<\/p>\n

We\u2019ll discuss the steps involved in filing a tax return, claiming tax expenses, how to appoint a rent collection agent and much more.<\/p>\n

Please note that while corporate property owners<\/strong> are also required to pay tax in Ireland, the content in this article will be particularly relevant to individual landlords<\/strong>.<\/p>\n\n

1. Is rental income taxable in Ireland? And if so, how much tax do non-resident landlords pay in Ireland?<\/h2>\n

Income tax<\/h3>\n

Do you pay tax on your rental income in Ireland?<\/p>\n

If the answer to that question is \u2018no\u2019, you may run into some difficulties with the Irish tax authorities!<\/p>\n

In short, if you earn income from a rental property in Ireland you must pay tax<\/strong>.<\/p>\n

Exactly how much income tax you will be required to pay will depend on your personal circumstances. For example, there are different tax rates for corporates and individual property investors.<\/p>\n

As an individual landlord, the first \u20ac42,000<\/strong> of your earnings will be taxable at 20%<\/strong>. Meanwhile, the balance will be taxed at 40%<\/strong>.<\/p>\n

USC<\/h3>\n

If you earn more than \u20ac13,000 in Irish rental income<\/strong>, as a non-resident landlord, you are liable to pay USC.<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t
2025<\/th>Standard rate of USC<\/th>\n<\/tr>\n<\/thead>\n
First \u20ac12,012<\/td>0.5%<\/td>\n<\/tr>\n
Next \u20ac15,370<\/td>2%<\/td>\n<\/tr>\n
Next \u20ac42,662<\/td>3%<\/td>\n<\/tr>\n
Balance (above those amounts)<\/td>8%<\/td>\n<\/tr>\n
Self-employed income over \u20ac100,000<\/td>11%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

PRSI<\/h3>\n

As a non-resident property owner, you will not be subject<\/strong> to Pay Related Social Insurance (PRSI), except if you let your property through booking sites such as Airbnb. In this case, your rental profit will be liable to PRSI.<\/p>\n

PRSI, charged at 4%, is a tax paid for the Irish social insurance fund.<\/p>\n

PRSI is typically chargeable against rental income.<\/p>\n

However, only resident landlords are required to deduct PRSI<\/strong>.<\/p>\n

\"tax<\/p>\n

Capital Gains Tax – CGT<\/h3>\n

If you sell a property in Ireland for a profit<\/strong>, you will be required to pay Capital Gains Tax (CGT).<\/p>\n

The current rate of CGT is 33% and annual gains of up to \u20ac1,270 are exempt from CGT.<\/p>\n

There are a number of reliefs that can minimise your CGT liability.<\/p>\n

Local Property Tax – LPT<\/h3>\n

Every owner of Irish property is required to pay Local Property Tax (LPT for short).<\/p>\n

And regardless of whether you live in Ireland or abroad, you must still pay LPT.<\/p>\n

Exactly how much LPT you will be charged will depend on your property\u2019s value. The general LPT rate is currently 0.18% for properties valued under \u20ac1 million and 0.25% on the amount of the value over \u20ac1 million.<\/p>\n

The liability date for LPT is 1 November each year – this means that your property is liable for LPT for 2024 if it’s a residential property on 1 November 2023.<\/p>\n

2. How much tax do non-resident corporate landlords in Ireland pay on their rental properties?<\/h2>\n

Non-resident company landlords are subject to Irish corporation tax at the rate of 25% on rental income from Irish property.<\/p>\n

3. How much rent can you collect without paying tax?<\/h2>\n

You should report your rental income to Revenue for tax assessment \u2013 regardless of how much income you earn.<\/p>\n

Some Irish resident landlords are entitled to earn up to \u20ac14,000 in rental income tax-free (this is known as Rent-a-Room relief<\/a>). However, in order to qualify for this relief, you must be letting a room in your sole or main residence.<\/p>\n

As an overseas landlord, it is unlikely you will be able to qualify for this type of tax relief.<\/p>\n

4. Is Airbnb income taxable in Ireland?<\/h2>\n

While Airbnb income is not necessarily considered \u2018rent\u2019 per se, it is still taxable in Ireland.<\/p>\n

So, even if the income you earn from your property is generated exclusively through short-term lettings, you must still declare your rental income for self-assessment tax.<\/p>\n

\"declaring<\/p>\n

5. Am I required to file a tax return in Ireland? How do I declare rental income in Ireland?<\/h2>\n

You will need to file tax documents in order to declare your non-resident landlord rental income with Revenue.<\/p>\n

The exact form you will be required to file will depend on your individual circumstances.<\/p>\n

Revenue will consider you to be a \u2018chargeable person\u2019 for self-assessed tax purposes if:<\/h3>\n