Non-Resident Landlord

Non-Resident Landlord Taxation in Ireland: A Complete Guide for Expats

Owning a rental property in Ireland while living abroad comes with specific tax responsibilities. Recent changes, including the Non-Resident Landlord Withholding Tax (NLWT) system introduced on 1 July 2023, have made compliance more structured but slightly more complex.

This guide explains:

• Who qualifies as a non-resident landlord
• Paying taxes via collection agents or directly
• Annual return obligations
• Tax reliefs and allowable expenses
• Residential Premises Rental Income Relief (RPRIR)
• Key steps for 2025

1. Who is a Non-Resident Landlord?

You are a non-resident landlord if:

• You own property in Ireland
• You rent it out but live outside Ireland, including Northern Ireland

Key points:

• Rental income from Irish property is taxable in Ireland first, even if you pay taxes abroad
• All sources of rental income must be declared to Revenue

Example: If you live in Spain and rent out a house in Dublin, your Irish rental income is taxable in Ireland, but you may claim a tax credit in Spain.

2. Paying Tax via a Collection Agent

Engaging a collection agent simplifies compliance under the NLWT system:

• Agents collect rent, withhold 20% of payments, and remit it to Revenue
• Agents submit Rental Notifications (RN) for each payment
• Agents who want to remain chargeable must register with Revenue

How Collection Agents Work

1. Receive rent from tenants
2. Deduct 20% and remit to Revenue
3. Submit RN via NLWT system

Using a collection agent reduces stress, ensures compliance, and avoids mistakes.

3. Tenant Responsibilities

If you do not use a collection agent, tenants must:

• Pay rent directly to you
• Submit an RN and withhold 20% for Revenue

Tenants can make submissions via:

• myAccount
• Revenue Online Service (ROS)

The withheld tax is credited to your annual return, so you don’t pay tax twice.

4. Filing an Annual Return

All non-resident landlords must file either:

• Form 11 (Income Tax Return) for individuals
• CT1 (Corporation Tax Return) for companies

What to Include:

• Gross rental income
• Expenses, deductions, and capital allowances
• NLWT credits from tenants or collection agents

The NLWT system pre-populates your annual return using Rental Notifications, making filing easier. Using a tax agent is recommended for accuracy.

5. Key Requirements for 2025

For the 2025 tax year:

• File Form 11 for income from 1 Jan – 31 Dec 2025
• Use your PPSN or TRN
• Include NLWT deducted Pay Local P
• Property Tax (LPT) if you own property as of 1 Nov 2024
• Consider Capital Gains Tax if you sell or inherit property

6. Tax Reliefs for Non-Resident Landlords

Non-resident landlords are eligible for deductions to reduce taxable income. Common reliefs:

Tip: Keep receipts for at least six years to claim these expenses.

7. Residential Premises Rental Income Relief (RPRIR)

A new relief for individual landlords:

Important Notes:

• Relief applies only to income tax
• Withdrawals from the rental market result in clawback

8. Summary Table: Non-Resident Landlord Obligations

9. Recommendations for Non-Resident Landlords

1. Engage a collection agent for efficiency and compliance
2. Keep accurate records of rental income and expenses
3. File annual returns on time to avoid penalties
4. Claim all eligible tax reliefs
5. Consult an Irish tax specialist to ensure full compliance

Professional advice is crucial for maximising tax efficiency and avoiding errors.

10. Conclusion

Being a non-resident landlord in Ireland involves specific tax obligations, particularly under the NLWT system.

Key takeaways:

• Rent collected by agents or tenants must have 20% withheld for Revenue
• Annual returns must include all income, expenses, and credits
• Claim available deductions and RPRIR relief
• Maintain records for compliance and audit purposes

With proper planning and professional guidance, you can simplify the process and legally reduce tax liabilities.

Disclaimer

This article is for general informational purposes only and does not constitute professional accounting, tax, legal, or financial advice. Tax laws in Ireland may change, and individual circumstances vary. You should consult a qualified Irish tax advisor before taking or refraining from any action based on this information. ST Tax accepts no liability for any loss or damage arising from reliance on this content.