Non-resident landlords

Collection agent

A collection agent can be:

• an estate agent
• a management company
• a solicitor
• someone you have nominated to act on your behalf.

Obligations prior to June 2023

If a non-resident landlord engages the services of a collection agent, the collection agent:

• must be resident in State
• must register with Revenue as a "Collection agent" by completing a Collection Agent Registration Form
• must have a Revenue record under a new, distinct Tax Reference Number (TRN) for each landlord
• is not entitled to deduct tax from rental payments to the landlord (Form R185 should not issue)
• may retain a portion of the rents to satisfy the tax payable
• should file the tax return and pay to Revenue the portion of rents retained
• and
• will be chargeable and assessable for all income of the non-resident landlord which is liable to tax in the State.

A non-resident landlord may be entitled to a portion of personal credits, reliefs or deductions. This may apply even when the income is chargeable and assessable in the name of the collection agent.

If you are a collection agent for a non-Irish resident corporate landlord, you must register for Corporation Tax (CT).

Obligations since 1 July 2023

The Finance Act 2022 introduced changes to the obligations of collection agents of non-resident landlords. The amendments provide that collection agents who act for a non-resident landlord may:

• be relieved of the obligation of being assessable and chargeable to tax for the Income of the non-resident landlord
• deduct 20% Withholding Tax from rental payments to non-resident landlords
• remit that tax to Revenue using the NLWT system
• and
• provide information about the non-resident landlords, the property, payment and the tax deducted to Revenue etc.

For further information on “Taxation of non-resident landlords”, please refer to the  Tax and Duty Manual Part 45-01-04.

Where the collection agent deducts and remits the tax to Revenue, they will:

• no longer be designated chargeable
• not be responsible for filing an Income Tax Return (Form 11) or a Corporation Tax Return (CT1) for the income
• withhold and remit 20% of the rental payment
• make a Rental Notification (RN) through the NLWT system in myAccount and the Revenue Online Service (ROS)
• and
• be able to submit RNs in bulk. 

Where a collection agent withholds 20% tax and remits it to Revenue, the non-resident landlord should note:

• the removal of all current derogations (section 4.1 in Tax and Duty Manual Part 38-01-04H “Income Tax Return 2023”)
• the connection to credits from withheld payments in the NLWT system
• and
• that the non-resident landlord will be responsible for filing their Income Tax Return (Form 11) or a Corporation Tax Return Form (CT1).

Next: If a tenant withholds tax