Non-resident landlords

Changes from 01 July 2023

The Finance Act 2022 introduced changes to the obligations of tenants and collection agents of non-resident landlords. For further information, please see Non-Resident Landlord Withholding Tax (NLWT).

The amendment in the Finance Act provides that collection agents who act for a non-resident landlord may deduct withholding tax. This is currently at the standard rate of 20% from rental payments to non-resident landlords and must be remitted to Revenue.

Where the collection agent deducts and remits the tax to Revenue, they are no longer chargeable to such tax in Ireland. 

These amendments came into effect on 01 July 2023.

Collection agents will:

• no longer be designated chargeable and will not be responsible for filing an Income Tax Return (Form 11) or CT1 for the rental income
• withhold and remit 20% of the rental payment and make a Rental Notification (RN) through a new withholding tax platform in myAccount and Revenue Online Services (ROS)
• and
• be able to issue Rental Notifications (RNs) in bulk.

Non-resident landlords should note:

• the removal of all current derogations
• the connection to credits from withheld payments in the new system
• and
• that they will be responsible for filing the Income Tax Return (Form 11) or CT1.

Tenants paying directly to a non-resident landlord:

• will no longer be designated chargeable and will not be responsible for accounting for the withholding figure of 20% on their personal tax return
• and
• will withhold and remit 20% of the rental payment and make a Rental Notification (RN) through a new withholding tax platform available on myAccount.

Non-Resident Landlord Withholding Tax (NLWT) System

The new NLWT system enables tenants or collection agents to make Rental Notifications (RN) when making payments to a non-resident landlord. This notification and accompanying payment, needs to be submitted within 21 days of paying the rent to the non-resident landlord.

The system is available to the agent, the collection agent, the landlord and the tenant. Landlords will be able to claim the withheld credits on their annual Income Tax Return (Form 11) or CT1.