Non-Resident Landlord Tax in Ireland Explained

If you live outside Ireland but earn rental income from property here, you are still required to pay Irish tax.
Since 1 July 2023, a new system called the Non-Resident Landlord Withholding Tax (NLWT) has changed how this works.

Under the new rules, tenants or collection agents must withhold tax and report rental payments to Revenue.
In this guide, you’ll learn how the system works, what your responsibilities are, and what happens when you later sell the property.

How the Non-Resident Landlord Tax Works

If you are not resident in Ireland but rent out Irish property, Section 1041 of the Income Tax Act 1997 requires your tenant or collection agent to handle withholding tax at the standard rate of 20%.

Since July 2023, the new NLWT system applies as follows:

• No collection agent appointed: The tenant must withhold 20% tax and file a Rental Notification (RN) with Revenue within 21 days of paying rent.
• Collection agent appointed: A letting agent or accountant in Ireland may withhold and file the RN instead. When they comply fully, they are no longer automatically responsible for the rental income.

Even with these steps, the landlord must still file an Irish tax return, report the gross rent, and claim credit for the tax withheld.

Filing Your Rental Income as a Non-Resident

As a non-resident landlord, you must:

• Register for a PPS number if you don’t already have one.
• File an annual Irish Income Tax Return (Form 11).
• Report your gross rental income, less allowable expenses.
• Claim a credit for any tax withheld under NLWT.

Allowable expenses include:

• Letting agent fees
• Mortgage interest (if conditions are met)
• Repairs and maintenance
• Insurance and management fees
• Accountancy and professional fees

You cannot deduct capital improvements or personal costs.

If you earn rental income through a non-resident company, Revenue may treat it as Irish rental profits chargeable to Corporation Tax at 25% instead of income tax.

Common Compliance Issues

In practice, several problems can arise:

• Tenants may not realise they must withhold and report NLWT.
• Collection agents sometimes forget to file the Rental Notification (RN).
• Landlords assume the withholding covers their full tax obligations.
• Rent may be paid in full directly to the landlord without any tax deducted.

Even if the tenant or agent fails to act, Revenue can still pursue the landlord directly. The ultimate responsibility lies with the landlord to report and pay the correct tax.

To stay compliant, it’s important to:

• Appoint a registered collection agent in Ireland.
• Ensure NLWT rules and RN filings are followed.
• File your Irish income tax return every year.

What Happens When You Sell the Property

If you later decide to sell your Irish property, Capital Gains Tax (CGT) will apply to the sale.

Before your solicitor can release the sale proceeds, Revenue usually requires a clearance letter, often called a Letter of No Audit.
This step is separate from CG50 clearance and applies specifically to non-resident vendors.

You can read more about that process here: Non-Resident CGT Clearance – Letter of No Audit

Being up to date with your rental tax filings will also help prevent delays in securing CGT clearance later.

Final Thoughts

If you’re a non-resident landlord, you must ensure that:

• Your tenant or agent withholds tax under NLWT, and
• You file your annual Irish tax return.

By keeping your rental records accurate and your taxes up to date, you’ll avoid penalties and simplify the process when it’s time to sell your property.

This article is intended for informational purposes only and should not be considered a replacement for professional advice. The author(s) disclaim any liability for actions taken or not taken based on the content of this document. It is recommended to seek tailored advice before making any decisions related to the topics discussed in this article.