Foreign rental income

Foreign rental income and double taxation

You may have to pay tax on your foreign rental income in the country your property is located in and also in Ireland. This will depend on your residence or domicile status.

You may be able to deduct some, or all, of the foreign tax you have paid when you are calculating how much Irish tax you owe. The amount that you can reduce your Irish tax by will depend on whether Ireland has a Double Taxation Agreement (DTA) with the country your property is located in.

Some countries charge a tax on deemed rental income. This is the rental income you are expected to have earned from renting out the property even if it was not rented out. You cannot offset this tax against the amount of Irish tax you owe.

See examples below.

If Ireland does not have a DTA with the country your property is located, you can claim a deduction for the foreign tax paid. You can offset this against your foreign rental income when calculating the Irish tax due.