Non-residents are taxed in Ireland on income arising from Irish sources only. You are considered tax resident in the Ireland if you spend at least 183 days there per year or if your main resident home is located in Ireland. Irish Stamp Duty is charged on the purchase of Irish property at rates varying from 1% - 9% (top rate reduced to 6% from 2009) depending on value and whether you are an owner occupier or not. Non-owner occupiers / Investors with an Irish property valued less than €127,000 are exempt from Irish Stamp Duty. Irish Income Tax is levied on Irish rents / income at rates varying between 20—41% depending on level of net income. Non-Resident Landlord (NRL) Non resident landlords are liable to Irish income tax on income from properties within Ireland and must file an Irish Tax Return. The Irish income tax year runs from 1 Jan - 31 Dec each year.
Non-Resident Landlords should have been deducted. Where an agent, resident in the State, is appointed by the non-resident landlord to manage the property and the agent is collecting the rents, the rents must be paid gross to the agent. The agent is then chargeable to tax on the rents as Collection Agent for the landlord and is required to submit an annual tax return and account for the tax due under Self Assessment.
You will also be obliged to file a tax return detailing your worldwide income in your home (tax resident) country.
Where a double taxation agreement exists between the Ireland and your home country, which provides for double taxation relief, then a deduction for tax paid in the foreign country can be offset against tax on the same income in your home country.
Tax on purchase:
Ongoing property taxes:
If a landlord resides outside the country and rent is paid directly to him/her or to his/her bank account either in the State or abroad, tax must be deducted by the tenant at the standard rate of tax (currently 20%) from the gross rents payable. Failure to deduct tax leaves the tenant liable for the tax that
At the end of the year, the tenant should give the landlord a completed Form R185. This form gives details of the amount of the rent that was paid over to Revenue. The landlord can then claim this amount as credit on their annual Tax Return.
If a non resident landlord does not wish to rely on a tenant or Agent to deduct tax or does not want either party to deduct tax at source from Gross rents, s/he may register for tax in Ireland and submit an annual tax return where allowances will be given for rental costs (including mortgage interest) incurred against gross rents.
Transfer taxes:
Irish Capital Gains Tax (CGT): Irish CGT is charged on Irish Property sold at 20% on the actual gain.