Ordinarily resident & tax credits

Hi there, I'm new to the forum and hope that one/some of you can help me.

I have been resident in Ireland all my life. I plan to leave this month, which I understand from the revenue website will make me a resident this year, and ordinarily resident for 2016-2018.

I am renting my apartment and will pay tax against the rental income. Because I am a resident this year, I can use the personal tax credit against my rental income.


My question relates to next year and the 2 "ordinarily resident" years after that. Am I entitled to the personal tax credit while I am ordinarily resident, but not physically in Ireland?

And if so, does this entitlement change if I work/don't work while I am away?

As a non-resident (regardless of whether you are also ordinary resident) you would be entitled to tax credits in the proportion that your Irish rental income bears to your world-wide income.

Obviously, whether you have or have not foreign income will affect the apportionment.

Besides credits, you are entitled to deduct the same expenses against your rental income as an Irish resident landlord.

You should also think about the method by which the tenants will pay the rent. If it is paid to you directly or into your bank account, they must deduct income tax at 20% and pay you the balance.

If, however, the rent is paid to an Irish agent (agent could be a family member) then the rent is paid gross to that person.

Check out this and scroll to “What if Your Landlord is not resident in the State”.

Don’t forget about other matters such as Local Property Tax, registration with the Private Residential Tenancies Board, Water Charges, do you need to set up direct debits, who is going to check on the apartment from time to time, etc.