Non-resident landlord tax calculations

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Forthcoming changes on how tax on income from properties owned by non-residents place more responsibility on the landlord for the proper reporting and withholding of tax.

By Eoghan McGuire C.T.A., F.C.A. and  Yvonne Moloney A.C.C.A., C.T.A

From 1 July 2023, Revenue will introduce a new administrative regime for rent paid to non-Irish resident landlords. There will be a new Non-resident Landlord Withholding Tax (NLWT) system available in myAccount and in ROS.

Current Regime

A non-resident landlord, when paying tax on their Irish rental income has two options:

  • engage the services of a collection agent to collect the rent on their behalf and file their annual tax return, OR
  • have their tenant withhold 20% of the rent due and submit it to Revenue.

New Regime from 1 July 2023

The new system changes the obligations of tenants, collection agents and non-resident landlords.

  • If the non-resident landlord has appointed a collection agent, the tenant will pay the full rent to the collection agent. The tenant has no further role.
  • If the tenant pays the non-resident landlord directly, the tenant must withhold 20% of the rent payment and submit this to Revenue with a Rental Notification (RN) in the NLWT system.
  • This notification and accompanying payment, needs to be submitted within 7 days of paying the rent to the non-resident landlord.
Collection Agents
  • The collection agent must withhold 20% of the rent payment and submit this to Revenue with a Rental Notification (RN) in the NLWT system.
  • This notification and payment must be submitted on or before the 1st day of the month following the month in which the rent is collected.
  • The collection agent will no longer be responsible for filing a Form 11/Form CT1 on behalf of the non-resident landlord where they comply with all the requirements of the new system.
  • If the collection agent does not remit 20% of the rent payment to Revenue, the agent will still be chargeable and assessable on the income of the non-resident landlord.
Non-resident Landlords
  • The non-resident landlord should either notify their tenant to withhold tax on the payment of the rent or where a collection agent has been appointed, they should arrange for the collection agent to withhold the tax on their behalf.
  • The non-resident landlord will be responsible for filing their own annual tax returns – Form 11 or Form CT1 (as appropriate).
  • Any tax withheld on the rent will be available as a credit on submission of the annual tax return.
  • The non-resident landlord needs to provide the tenant/collection agent with the LPT Property ID along with their name, address and tax reference number to ensure that payments are allocated correctly.

Revenue has published a new Tax and Duty Manual with more information which you can access here.

For further information, get in touch with DHKN through your regular relationship manager or contact or 091-782020.

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