RENT COLLECTION AGENT

If you are living abroad and earn rental income from a residential property in Ireland you are in the Non Resident Landlord (NRL) category for taxation purposes.

As of 1 st July 2023, non-resident landlords, in Ireland will encounter a new way for processing the tax on their rental income. This is due to the introduction of the Non-Resident Landlord Withholding Tax (NWLT) system.

Additionally, they must appoint a Collection Agent or put in place an arrangement with tenants to pass 20% of the monthly rental charged to the Revenue Commissioners via the NWLT system.

A non-resident landlord must also file a tax return for any income earned, and pay any rental income tax for which liability exists.

For non-resident landlords in Ireland, by designating Prestige Property Consultants as your Irish-resident agent to take on the tax liabilities of your property the requirement to deduct 20% tax at source is not a current Irish Tax or Revenue necessity.

Prestige Property Consultants also offer a standalone Non-Resident Landlord Tax Collection Agent & Tax Return Service, as you may prefer to manage the property yourself or you may have an agent already in situ.

Non-resident landlords must report any Irish rental property income to Irish Revenue on a Form 11 each year. If the property is owned jointly, both spouses must file separate tax returns and disclose their share of the rent separately.

In Ireland, there are specific rules in place surrounding tax collection and payment that all non-resident landlords must abide by. When it comes to putting aside taxes for Revenue, there are two choices available to landlords living abroad.

Tenant Withholding Tax:

Typically, when a tenant is renting a property from landlord living abroad, they are required to take 20% of the monthly rent amount and use this as a tax payment on your behalf.

This may seem like an unusual arrangement, but was introduced for a couple of reasons. First, it is used as a way to ensure that landlords  that are not residents pay their taxes in the first place.

Second, it means that the person responsible for payments is based in Ireland, making the process of making payments or receiving a refund much more straightforward.

Collection Agent:

A non-resident landlord(s) can appoint a collection agent to deal with taxes and rent collection.

The rent collection agent will register with Irish Revenue and will apply for a separate tax number to use solely for dealing with your property. The rent collection agent essentially act as an intermediary, collecting rent and filing income tax on your behalf and making sure that all tax obligations are met.

Using a collection agent has several benefits over a tenant withholding tax, the most obvious being that non-payment of tax or the correct tax will result in negative consequences for the non-resident landlord and could lead to penalties and or the implication of fines by Irish Revenue.