Non-Resident Landlord in Ireland 2025

Ireland’s rental property market continues to attract both Irish citizens living abroad and international investors. But if you’re a non-resident landlord, you need to understand the specific tax rules, compliance obligations, and reporting requirements that apply to you.

Unlike resident landlords, you can’t just collect the rent and file a simple return — there are extra withholding rules, stricter compliance checks, and international tax issues to navigate. Missteps can be expensive: penalties, Revenue audits, and even paying tax twice in two countries.

This guide covers everything you need to know in 2025 as a non-resident landlord in Ireland - with practical tips, worked examples, and planning strategies to protect your rental profits.

🏠 Who is a Non-Resident Landlord?

A non-resident landlord is someone who owns rental property in Ireland but is not resident in Ireland for tax purposes.

Residency Tests (for individuals)

Ireland uses two main tests:

• 183-day test → If you spend 183 days or more in Ireland in a tax year, you’re resident.
• 280-day test → If you spend 280 days or more over two years (with at least 30 days in each year), you’re also resident.

👉 If you don’t meet these, you’re considered non-resident, even if you’re Irish by birth or citizenship.

Bottom Line

If you live abroad but still own Irish property, you are a non-resident landlord. You must pay Irish tax on that property income - no exceptions.

💰 How Rental Income is Taxed for Non-Resident Landlords

Irish rental income is always taxable in Ireland, regardless of where you live.

• Income is taxed at your marginal rate (20% or 40%).
• Plus USC (0.5%–8%).
• Plus PRSI (4%) — often exempt for non-residents contributing to social security abroad.

👉 Without deductions, effective tax can exceed 50%.

📑 How Tax is Collected: Two Options

Revenue requires tax to be collected in one of two ways:

1. Appointing a Collection Agent (Best Practice)

• A Collection Agent (usually an accountant or tax adviser based in Ireland) is appointed.

They:

• Receive rent on your behalf.
• File annual tax returns.
• Claim all allowable deductions (mortgage interest, LPT, insurance, repairs, management fees, etc.).
• ✅ Advantage: Rent is received gross (no 20% withheld by tenant).

2. No Collection Agent

• If you don’t appoint one, the tenant must withhold 20% of gross rent and pay it directly to Revenue.
• Tenant provides you with a Form R185, showing tax withheld.
• You still file a tax return - the 20% already withheld is credited against your liability.
• ❌ Disadvantage: You may overpay tax because tenants can’t claim deductions - meaning your refund depends on filing later.

✅ What Expenses Can Non-Resident Landlords Deduct?

Non-resident landlords can claim the same deductions as resident landlords, including:

• Mortgage interest (100%, if property is RTB-registered).
• Repairs & maintenance (painting, plumbing, roof fixes - but not capital improvements).
• Insurance premiums.
• Local Property Tax (LPT).
• Management fees & letting costs (agents, advertising, legal fees).
• Service charges.
• Pre-letting expenses (up to €10,000 where property vacant ≥6 months).
• Capital allowances (12.5% per year for 8 years on furniture, appliances, fittings).

👉 Proper record-keeping (receipts, invoices, bank statements) is essential to support these claims.

📊 Worked Example: Non-Resident Landlord with Collection Agent

• Annual rent: €24,000

Expenses:

• Mortgage interest: €9,000
• Repairs: €2,000
• LPT: €500
• Insurance: €600
• Management fees: €1,200
• Furniture allowances: €1,200
• Net taxable income: €9,500

At 40% IT + USC + PRSI → approx. €4,940 tax due.
If tenant had withheld 20% (€4,800), landlord would still owe €140.

👉 With an Irish Tax Hub Collection Agent, the landlord pays only what’s necessary, claims all reliefs upfront, and avoids overpayment.

🌍 Double Taxation Treaties (DTAs)

If you’re tax resident abroad, you might also be liable for tax on your Irish rental income in your home country.

Ireland has DTAs with 70+ countries. These generally mean:

• Rental income is taxable in Ireland first.
• You may get a foreign tax credit in your country of residence.
• Prevents the same income being taxed twice.

👉 Without proper advice, many landlords pay tax twice - Irish Tax Hub ensures DTAs are applied correctly.

💶 Capital Gains Tax (CGT) for Non-Resident Landlords

If you sell an Irish property while abroad:

• You pay CGT at 33% on the gain.
• A Form CG50 clearance certificate may be required for sales >€500,000 (residential) or €1m (other).

Reliefs may reduce liability:

• Principal Private Residence (PPR) Relief - if you lived there before renting.
• Retirement Relief - for those 55+ under certain conditions.
• Entrepreneur Relief - 10% rate on qualifying disposals, up to €1m.

🏘️ Inheritance & Gift Tax (CAT)

If you plan to pass Irish property to children or relatives while abroad:

• Irish CAT rules still apply if the property is located in Ireland.

Reliefs include:

• Small Gift Exemption (€3,000/year).
• Favourite Niece/Nephew Relief.
• Business Relief (90% reduction) if structured properly.

👉 Non-resident landlords need careful succession planning to avoid large tax bills for heirs.

📌 Compliance Obligations Beyond Tax

RTB (Residential Tenancies Board)

• All tenancies must be registered annually.
• Failure = fines + loss of mortgage interest relief.

LPT (Local Property Tax)

• Pay annually, based on property market value.
• Fully deductible against rental income.

Revenue Reporting

• File an annual Irish tax return (Form 11).
• Include all rental income, expenses, and tax withheld.

⚠️ Common Mistakes by Non-Resident Landlords

• Not appointing a Collection Agent → tenants struggle with withholding, overpayments happen.
• Forgetting to register with RTB → loss of mortgage interest deduction.
• Ignoring LPT → Revenue surcharges.
• Not keeping receipts → Revenue disallows deductions.
• Paying tax twice (Ireland + home country) by not applying DTAs.
• Failing to plan for CGT and CAT on future disposals or inheritance.

💡 How Irish Tax Hub Helps Non-Resident Landlords

Managing Irish property from abroad is complex — but Irish Tax Hub makes it easy:

• Prepare and file your Irish tax returns with all reliefs.
• Ensure RTB and LPT compliance.
• Apply double taxation treaties to avoid being taxed twice.
• Provide ongoing advisory so your rental income is maximised, compliant, and stress-free.

⚡ If you’re a non-resident landlord, don’t risk penalties or overpaying tax. Contact Irish Tax Hub today - the trusted specialists for overseas landlords.