Note: Revenue's rules for non-resident landlords are changing from 1 July 2023. See our updated guidance.
A non-resident landlord has a choice to either:
Where the landlord is a non-resident individual, any rental income, after the deduction of allowable expenses, is liable to income tax and the Universal Social Charge (USC).
Where the landlord is a non-resident company, the tax treatment is dependent on the accounting period.
For accounting periods ending on or before 1 January 2022, rental income is liable to income tax, unless the company carries on a trade in Ireland through a branch or agency, when it would be liable to corporation tax.
For accounting periods commencing on or after 1 January 2022, rental income is liable to corporation tax, regardless of whether they carry on a trade in Ireland. The switch from income tax to corporation tax represents an increase in the tax payable (an increase from 20% to 25%) and to ensure compliance, non-resident companies need to address the following:
Non-resident landlords are entitled to the same expenses as a resident landlord. Such expenses may include, but not limited to: