What taxes am l liable to pay on buy to let rental in Ireland as a non resident there

1975

I'm considering buying a property in Ireland as a buy to let investment but wondered whether anyone knew what taxes l would be liable to pay on the rental income in Ireland. I am resident in the Uk and British (if that makes a difference to the answer) and I know by bringing the rental income into the UK l will have to pay Uk income tax on it, but would l have to pay Irish income tax also even though l am a non domicile there?
Are there any other Irish taxes? I know about the recently introduced property tax.
Thank you for any advice

melanzana

Once the property is situated in Ireland you will have to pay tax on the income there, doesn't matter if you are non resident or non domiciled.

So in addition to Income Tax on the rental income, less expenses etc. you will also have to pay USC which is a Universal Social Charge on all income, no allowances, no deductions and kicks in after around €10k of income.

You must also register tenancies with the Private Residential Tenancy Board. pRTB the arbiter in disputes. It has a fee.

You know about the LPT.

There is a Double Taxation Agreement between Ireland and uK which means you pay the income tax at the higher rate in either country in the end. Not on both. Since USC not part of the UK tax code, that may not fall within the DTA.

You may have to also pay PRSI.

Google citizens information.ie., and Revenue.ie. but I'd say you might have done so already.

Good luck. It's a good time to buy in Ireland now.

But as always, Location, Location. location!

theartfullodger

You might find the list of taxes is longer if you compare Irish taxes to this list discussed over at another place...
http://www.landlordzone.co.uk/forums/showthread.php?49095-How-many-taxes-can-a-landlord-have-to-pay

Cheers!

dimbo61

Sorry maybe I am missing something but WHY is it a good time to Buy in Ireland?
Has the Irish housing market recovered? Low unemployment ?
Tiger economy recovered !!!!!
How can you work out the right price for a property at the moment?
Then you are also starting a new business in a different country with the problems of different Tax systems, allowances and management.
Paying a letting agent will eat into your profit big style and the letting agent will be interested in making as much money from you and the tenant as possible !!!

1975

melanzana - thank you very much for your detailed reply. Very helpful indeed
thgartfullodger - thank you for the link, l will check it out
dimbo61 - things certainly to consider. Thank you

melanzana

dimbo61 wrote: »

Sorry maybe I am missing something but WHY is it a good time to Buy in Ireland?
Has the Irish housing market recovered? Low unemployment ?
Tiger economy recovered !!!!!
How can you work out the right price for a property at the moment?
Then you are also starting a new business in a different country with the problems of different Tax systems, allowances and management.
Paying a letting agent will eat into your profit big style and the letting agent will be interested in making as much money from you and the tenant as possible !!!

It is a good time to buy, because although the market is in the doldrums, in the good areas of Dublin, demand exceeds supply.

If you can afford a property in Dublin within the M50 Ring, no brainer. The demand for rentals within that corridor totally exceeds supply at the moment.

It is your decision re tax and charges. I'm just saying that is the reality.

In my previous post I did say location location location!

dimbo61

Dublin is a beautiful city we have visited a few times and it has some wonderful old houses.
Many properties appear to me to be money pits needing a lot of money spending on them. ( It was the old Georgian area)
Many capital cities have a healthy rental market but you really need to know the local market and buy the right property in the right area!
Good Luck

melanzana

dimbo61 wrote: »

Dublin is a beautiful city we have visited a few times and it has some wonderful old houses.
Many properties appear to me to be money pits needing a lot of money spending on them. ( It was the old Georgian area)
Many capital cities have a healthy rental market but you really need to know the local market and buy the right property in the right area!
Good Luck

It is my home town. Beautiful in parts, like any place.

You are right, there is nothing like a native to see the wood from the trees!