Non-resident landlords

Changes from 1 July 2023

The Finance Act 2022 introduces 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.

The amendment will also relieve the collection agent from being chargeable to tax in Ireland for such income of the non-resident landlord.

This amendment is dependent on a Ministerial order which is pending the introduction of a new Non-resident Landlord Withholding tax platform. This will be accessible through Revenue Online Service (ROS) and myAccount. This new system will be available from 1 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 ROS
• 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
• 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
• 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.