1. Who is considered a non-resident landlord?

You are a non-resident landlord if you live outside Ireland for tax purposes, even if you are an Irish citizen. Tax residence is based on days spent in Ireland, not nationality or property ownership.

2. Do non-resident landlords pay Irish tax on rental income?

Yes. All rental income from Irish property is taxable in Ireland, regardless of where you live.

Tax is paid to the Revenue Commissioners and must be declared annually.

3. How is tax collected on my rental income?

There are two permitted methods:

Option A – Irish Collection Agent (Most Common)

You appoint an Irish-based collection agent (e.g. estate agent or managing agent).

  • Rent is paid gross
  • The agent accounts for tax on your behalf
  • You still file an annual tax return

Option B – Tenant Withholding Tax (Less Practical)

If no agent is appointed:

  • The tenant must withhold 20% of rent
  • The tenant pays this to Revenue
  • This is administratively burdensome and often avoided

 Most landlords choose Option A.

4. Do I still need to file an Irish tax return?

Yes. All non-resident landlords must file an annual Irish tax return, even where tax is collected at source.

Returns are generally filed through ROS (Revenue Online Service).

5. What expenses can I deduct?

Allowable deductions include:

  • Management and letting fees
  • Repairs and maintenance (not capital improvements)
  • Insurance premiums
  • RTB registration fees
  • Accountancy and tax compliance costs
  • Mortgage interest (subject to current relief rules)

All expenses must be wholly and exclusively related to the rental property.

6. Do I need to register the tenancy?

Yes. Every private residential tenancy must be registered with the
Residential Tenancies Board (RTB).

Failure to register can:

  • Invalidate rent reviews
  • Prevent termination of tenancies
  • Expose landlords to sanctions and penalties

7. Can I increase the rent if I am abroad?

Yes, but rent regulation rules apply equally to resident and non-resident landlords.

Key points:

  • Most properties are in Rent Pressure Zones (RPZs)
  • Rent reviews are capped and formula-based
  • Strict notice and timing requirements apply

Improper rent increases can result in:

  • RTB disputes
  • Rent refunds
  • Financial penalties

8. Who deals with emergencies and tenant issues?

If you are non-resident, you are expected to have:

  • A local point of contact
  • Proper arrangements for repairs and emergencies
  • Timely responses to tenant issues

Most landlords appoint a licensed managing agent to fulfil these obligations.

9. Do I need an Irish bank account?

Not legally required, but strongly recommended.

Benefits:

  • Easier rent collection
  • Cleaner audit trail
  • Simplified tax compliance
  • Reduced international transfer costs

Client money rules apply where agents hold funds on your behalf.

10. What about Local Property Tax (LPT)?

Non-resident landlords are fully liable for Local Property Tax (LPT).

Key points:

  • Self-assessment applies
  • Valuation bands must be reviewed at each revaluation cycle
  • Penalties apply for late or incorrect returns

11. Are there additional compliance risks for non-resident landlords?

Yes. Common risk areas include:

  • Missed RTB deadlines
  • Invalid notices of termination
  • Incorrect rent reviews
  • Failure to meet minimum housing standards
  • Tax filing delays due to overseas residency

Professional management significantly reduces these risks.

12. Can I sell the property while living abroad?

Yes, but:

  • Capital Gains Tax (CGT) applies on disposal
  • Irish withholding tax may apply at sale
  • Solicitors and tax advisers should be engaged early

Advance planning can reduce exposure and delays.

13. Is professional management mandatory?

Not mandatory, but strongly advised for non-resident landlords.

A licensed managing agent:

  • Acts as your Irish collection agent
  • Ensures RTB and tax compliance
  • Handles inspections, maintenance and disputes
  • Protects you from inadvertent legal breaches

14. What happens if I do nothing?

Non-compliance can lead to:

  • Revenue interest and penalties
  • RTB sanctions
  • Rent invalidation
  • Legal disputes
  • Difficulty selling the property later

Passive ownership without oversight is high-risk in Ireland’s regulated rental market.

Tax laws for overseas landlords

Appointment of a Collection Agent

Managing rental tax can feel complicated, but it doesn’t have to be. Bespoke is one of the few estate agents that offers a collection agent service, designed to make the process simpler for landlords.

As your collection agent, we handle the submission of 20% of the monthly rent directly to Revenue on your behalf. This ensures everything is handled correctly and on time, giving you peace of mind.

  • A non-resident landlord must appoint a collection agent, usually the tenant or a property management company, to manage the rental income.
  • The collection agent is responsible for withholding 20% of the gross rent and remitting this amount directly to the Irish Revenue Commissioners as an advance payment of the landlord’s income tax.

Filing a Tax Return

  • The non-resident landlord is still required to file an annual tax return with the Irish Revenue Commissioners. The return should include all rental income and expenses related to the property.
  • The landlord can claim deductions for allowable expenses, such as mortgage interest, repairs, and management fees, which can reduce the taxable rental income.
  • The 20% tax withheld by the collection agent is credited against the landlord’s final tax liability. If the withheld tax exceeds the liability, a refund may be due.

Tax Credits and Deductions

  • Non-resident landlords may be eligible for certain tax credits and deductions that are available to resident landlords.
  • For example, interest on loans used to purchase or improve the property can be deducted, along with costs like repairs, insurance, and property management fees.

Double Taxation Treaties

  • Ireland has double taxation treaties with many countries. These treaties can help avoid double taxation, ensuring the landlord does not pay tax on the same income in both Ireland and their country of residence.
  • The tax paid in Ireland may be credited against tax liabilities in the landlord’s country of residence, depending on the specific terms of the relevant treaty.

Revenue Online Service (ROS)

  • Non-resident landlords can use the Revenue Online Service (ROS) to manage their tax affairs, including filing tax returns and making payments.

Professional Advice

  • Due to the complexity of international tax obligations, it is often advisable for non-resident landlords to seek professional tax advice to ensure compliance with Irish tax laws and to optimise their tax position.By following these steps and ensuring compliance with Irish tax regulations, non-resident landlords can manage their tax obligations effectively.

This document is provided for general information purposes only and does not constitute tax, legal, or financial advice. While every effort has been made to ensure the accuracy of the information at the date of publication, Irish tax law, Revenue practice, and residential tenancy regulations are subject to change, and their application may vary depending on individual circumstances.

Non-resident landlords should not rely solely on this document when making tax or compliance decisions. You are strongly advised to obtain independent professional advice from a suitably qualified Irish tax adviser, accountant, or solicitor in relation to your specific situation, including but not limited to:

  • Income tax obligations
  • Allowable deductions
  • Withholding tax arrangements
  • Capital Gains Tax on disposal
  • Local Property Tax liabilities

Neither the managing agent nor any associated party accepts any liability for loss, penalties, interest, or costs arising from reliance on this information without obtaining appropriate professional advice.