A non-resident landlord is someone who is not resident in Ireland, but rents out a property in Ireland. Income from renting out a property, or from another source that qualifies as rental income, is taxable. This income must be declared to Revenue.
For non-resident landlords with rental income there are two options available to them:
- Engage the services of a collection agent, who collects the rent and files the tax return in the name of the non-resident landlord
- Have the tenant withhold 20% of the rent and submit it directly to Revenue
If an individual has other sources of Irish income then there will still be a requirement to file a personal tax return. If however the individual has no other sources of Irish income and has engaged a collection agent to file a return of the rental income then there is no other filing obligation in Ireland.
In many cases, non-resident landlords were not following either of the above options, and were simply filing and paying their own tax. Revenue will only accept the correct statutory approach from January 2023 and therefore require non-resident landlords who do not have a collection agent in place by 31 December 2022 (and advise Revenue that they have now appointed a collection agent). Otherwise the tenant will be required to withhold the tax.