Non-Resident Status: Tax Compliance for Irish Landlords Abroad

Introduction

Owning a rental property in the Republic of Ireland while living abroad is a popular way for Irish expats and overseas investors to generate steady income.
However, being a non‑resident landlord brings its own set of tax obligations that differ from those of resident owners.

From the 20 % Non‑Resident Landlord Withholding Tax (NLWT) to Local Property Tax (LPT), allowable expenses and Capital Gains Tax (CGT) on a future sale, the rules can feel overwhelming. This guide breaks down the essentials, offers practical steps, and highlights recent changes (2023‑2025) so you can stay compliant and maximise your after‑tax return.

1. Who qualifies as a non‑resident landlord?

You are classed as a non‑resident landlord when:

Situation Reason you are “non‑resident”
You have moved permanently abroad but still own an Irish rental property Tax residency is based on the 183‑day rule or one‑year continuous presence in Ireland – you no longer meet either test.
You are on a temporary assignment (e.g., work, study) and remain abroad for the tax year You spend more than 183 days outside Ireland or your centre of vital interests is overseas.
You inherited or bought a property while living overseas Ownership alone does not affect residency; your personal residence determines status.

If you are unsure, Revenue’s Residence and Domicile guidelines (Revenue – “Non‑resident landlords”) provide a detailed residency test.

2. Core tax obligations

Tax What it covers Key rates & thresholds (2025)
Income Tax on rental profits Net rental income after allowable expenses Standard rate 20 % (higher rate 40 % applies if total income exceeds €36 800).
Non‑Resident Landlord Withholding Tax (NLWT) 20 % of gross rent collected by the tenant or collection agent, paid directly to Revenue. Fixed 20 % on the gross amount; creditable against your final tax bill.
Local Property Tax (LPT) Annual tax on residential properties valued over €0. 0.18 % of the self‑assessed market value (2025 rate).
Capital Gains Tax (CGT) on disposal Tax on the profit when you sell the property. 33 % on the net gain (after allowable costs & reliefs).
Double‑Taxation Relief Prevents the same income being taxed in both Ireland and your country of residence. Varies by treaty – generally a credit for Irish tax paid.

2.1 Filing deadlines

Return Due date (2025) Notes
Income Tax Self‑Assessment (Form 11) 31 October 2025 (paper) – 31 December 2025 (ROS). Include rental income, expenses, and claim NLWT credit.
LPT 1 November 2025 (online) – 31 January 2026 (paper). Pay the full amount for the valuation year 1 Nov 2024 – 31 Oct 2025.
CGT (on disposal) 30 days after the disposal date (electronic filing). Must also submit a CGT return (Form CGT‑1).
NLWT Collected monthly; agents/tenants must remit to Revenue by the 15th of the following month. Provide Form R185 (tax withheld) at year‑end.

3. How NLWT works – two practical routes

3.1 Tenant Withholding Tax (the “direct” method)

  1. Tenant withholds 20 % of each rent payment and sends it to Revenue.
  2. The tenant issues Form R185 at year‑end, showing the total tax deducted.
  3. You claim the R185 amount as a credit on your Form 11 return.

Pros

  • No need for a third‑party agent.
  • Simple if you have a long‑term, trustworthy tenant.

Cons

  • Relies entirely on the tenant’s compliance.
  • Tenants may be reluctant to take on the administrative burden.

3.2 Appointing a Collection Agent (the “indirect” method)

A collection agent can be:

  • A professional tax adviser/accountant
  • An estate or letting agent
  • A solicitor or trusted family member residing in Ireland

The agent collects the full rent, deducts the 20 % NLWT on your behalf, and forwards the tax to Revenue. They also handle the filing of your Form 11 and any LPT payments.

Key steps to appoint an agent

  1. Register the agent with Revenue using a Collection Agent Registration Number (TRN).
  2. Sign a Letter of Authority allowing the agent to act on your behalf.
  3. Agree on a fee structure (typically 5‑10 % of rental income).

Pros

  • Professional handling reduces risk of missed payments or penalties.
  • Ideal for landlords with multiple properties or limited contact with tenants.

Cons

  • Additional cost (agent fees).
  • You remain ultimately responsible for the tax return; choose a reputable, tax‑qualified agent.

4. Allowable expenses – what you can deduct

Category Typical items How to claim
Mortgage interest Interest on loans used to purchase, repair or improve the property (not the capital repayment). Record interest statements; claim against gross rent.
Repair & maintenance Leaking roof, boiler servicing, repainting, pest control. Must be repairs, not capital improvements.
Management & agent fees Letting agent commissions, collection agent fees, property manager salaries. Include invoices; deductible in full.
RTB registration fees €40 per tenancy (or €20 for AHB). Deductible as an expense.
Insurance premiums Building, landlord liability, rent guarantee insurance. Claim the whole premium.
Utilities & council tax (if paid by landlord) Electricity, gas, water, refuse collection. Deduct when you bear the cost.
Wear & tear (furnished dwellings) Furniture, white goods, fittings – capital allowances at 12.5 % per year for up to 8 years. Claim via capital allowances schedule.
Legal & professional fees Accountant, tax adviser, solicitor for tenancy agreements. Deductible if directly related to the rental.
Travel expenses Reasonable travel to Ireland for property inspection/maintenance (airfare, accommodation). Must be wholly and exclusively for the rental.
Double‑taxation relief Tax paid abroad on the same rental income. Claim credit against Irish tax liability (subject to treaty).

Record‑keeping tip: Keep digital copies of all receipts, invoices and bank statements for six years – Revenue may request them during an audit.

5. Recent legislative changes (2023‑2025)

Change Effective date What it means for you
NLWT switch to electronic filing 1 July 2023 Tenants/agents must submit NLWT via the online portal; paper forms are no longer accepted.
Residential Premises Rental Income Relief (RPRIR) 1 January 2024 (phased 2024‑2027) Provides a tax credit of up to €1 000 per year for landlords who commit to a minimum four‑year rental period.
LPT rate increase 1 January 2025 Rate rose from 0.15 % to 0.18 % of market value.
Extension of ROS filing deadline 2025 tax year Paper returns due 31 Oct, online (ROS) extended to 31 Dec, giving an extra two months to submit.
Capital allowances for energy‑efficiency upgrades 1 July 2025 Qualifying insulation, solar panels and heat‑pump installations qualify for enhanced capital allowances (20 % first‑year claim).

6. Step‑by‑step compliance checklist

  1. Confirm your residency status – use Revenue’s “Residence and Domicile” test.
  2. Register the property for LPT (if not already done) – self‑assessment via the LPT online portal.
  3. Choose a NLWT route – tenant withholding or collection agent.
    If using an agent: complete the Letter of Authority and obtain the agent’s TRN.
  4. Open a dedicated Irish bank account (or maintain the existing one) for rent receipts – simplifies tracking.
  5. Maintain a rental ledger – record gross rent, NLWT deducted, and all allowable expenses month‑by‑month.
  6. Submit Form R185 (or agent’s equivalent) to Revenue at year‑end.
  7. Prepare Form 11 (or Form 12 for a simple return) by the filing deadline, claiming:
    • NLWT credit,
    • All allowable expenses,
    • RPRIR relief (if eligible).
  8. Pay any balance of income tax by the due date (31 Oct/31 Dec 2025).
  9. File LPT by 1 Nov 2025 (or 31 Jan 2026 for paper).
  10. If you sell: calculate CGT, apply any reliefs (principal private residence, lettings relief, double‑tax treaty), and file CGT‑1 within 30 days of disposal.

7. Common pitfalls and how to avoid them

Pitfall Consequence Prevention
Relying on a tenant who fails to withhold NLWT Revenue may assess the full 20 % plus penalties. Use a collection agent or obtain a written commitment from the tenant; follow up each month.
Mixing personal and rental expenses Disallowed deductions, possible audit. Keep a separate bank account and distinct credit‑card for rental costs.
Failing to register for LPT Automatic assessment at a higher rate + interest. Register as soon as you acquire the property; set a calendar reminder for annual renewal.
Claiming capital improvements as repairs Disallowed expense, reduces tax efficiency. Classify only genuine repairs; treat upgrades as capital assets for CGT relief.
Missing the ROS extension deadline Late filing penalties (up to €100) and interest. Mark the 31 Dec deadline in your calendar; file early.
Overlooking double‑taxation relief Paying tax twice on the same income. Check the Ireland‑[your country] DTA and claim the credit on Form 11.

8. Practical example – John’s Irish flat from Spain

Item Amount (€)
Gross annual rent 12 000
NLWT (20 % withheld by agent) 2 400
Mortgage interest 3 000
Repairs & maintenance 800
Agent fees (5 % of rent) 600
RTB registration 40
LPT (0.18 % of €250 000 valuation) 450
Net taxable profit 5 ? (12 000 – 2 400 – 3 000 – 800 – 600 – 40) = 5 ? (calc)

Tax calculation

  • Income tax (20 % on €5 ? ) ≈ €1 ?
  • NLWT credit = €2 400 (already paid)
  • Final tax due = €1 ? – €2 400 = Refund of €? (illustrates how NLWT can over‑pay when expenses are high).

John’s example shows the importance of tracking all deductible costs; otherwise he could end up paying unnecessary tax.

9. When to seek professional advice

  • Multiple properties across different counties or jurisdictions.
  • Complex ownership structures (e.g., property held through a foreign company or trust).
  • Double‑taxation concerns with countries that have ambiguous treaty provisions.
  • Capital gains planning – timing the sale to use reliefs such as principal private residence or lettings relief.

A qualified Irish tax adviser (CTA/CPA) familiar with non‑resident landlord rules can:

  • Register you for NLWT and LPT.
  • Prepare and file Form 11 and CGT returns.
  • Optimise deductions and reliefs (RPRIR, capital allowances, DTA credits).
  • Liaise with Revenue on any queries or audits.

Conclusion

Being a non‑resident landlord in Ireland offers attractive rental yields, but it also brings a distinct tax framework that must be navigated carefully. By understanding the NLWT options, staying on top of LPT, claiming all legitimate expenses, and respecting filing deadlines, you can keep your overseas investment compliant and profitable.

If you’re unsure which route suits your situation or need help with the paperwork, consider partnering with a specialised Irish tax adviser. Proper planning today saves headaches – and possibly thousands of euros – tomorrow.

Further Resources