How are non-resident landlords taxed on Irish rental income?

Irish rental income is always taxable in Ireland, even if the landlord lives abroad. When a non-resident landlord lets property in Ireland, the tenant is legally required to deduct 20% income tax from the gross rent and remit it directly to Revenue, unless the landlord has appointed an Irish-resident collection agent.

The collection agent (typically a property management company or solicitor) takes responsibility for ensuring the tax is paid on the landlord's behalf. Once an agent is appointed and Revenue has been notified, tenants pay rent without deduction to the agent, who then handles the tax compliance.

Non-resident landlords must file an Irish income tax return each year. They can claim deductions for allowable expenses: mortgage interest (subject to restrictions for residential lettings), repairs, insurance, management fees, and other legitimate costs. The net rental income is taxed at the normal Irish income tax rates (20% or 40%), plus USC and PRSI where applicable.

Non-residents who fail to comply with Irish filing obligations or whose tenants withhold the 20% but do not remit it to Revenue remain personally liable. Revenue can pursue landlords through the courts and international cooperation mechanisms.