Questions on overseas landlord

Hello

I am a FTB and planning to buy a new property around Feb/March 2016. House value €260K, I will pay 60K deposit.

Due to work, I may need to move to China by end of next year for few years. I plan to let the house (appx €1200/month) and estate agent will handle it completely. The questions I have are around tax on this rental income

Below are my estimates -
Total Rental income - €14400/year
Withholding tax - €2880/Year (20%- paid to revenue by Collection/Letting Agent???)
Expenses - ~€1800/yr (letting agent fees,PRTB,account fees, Insurance, repairs etc).
Mortgage repayment €11000/yr

So my questions are-
1. Does 75% of annual mortgage Interest will be part of expenses- I have not calculated in €1800 sum?
2. This estimates suggest I can make profit appx €2600/yr on this - Do I pay 20% tax on this value or I am missing anything here?
3. Do I buy this property now or wait till my return to Ireland- My own feeling is to buy now as it is a good property and rental market is strong.

decisions, decisions !!

Thanks for reading

Comes down to tax and residency rules

but ensure you deduct as expenses
75% interest, Hse & Life insurance on the mortgage, any service charges, letting agent fees and PRTB.
Profit is then subject to USC, PRSI and Income tax at the higher rate if you are a high rate IT payer.

If you appoint an agent you won't have to pay the foreign residence withholding tax. Do this as really I would never trust tenants to pass the money over to revenue. You will need to pay preliminary tax by October and the balance the following year, and also USC. You wont have any personal allowances in ireland. Unless your agent does everything (I doubt), you will need to submit your tax return on the ROS system and its best to get enrolled in this while you are still in Ireland (they send you passwords by post so not a good idea if in china).

Agent 47 said:

Profit is then subject to USC, PRSI and Income tax at the higher rate if you are a high rate IT payer.

Click to expand...

This isn't strictly correct.

Income Tax on a non-resident is 20% until normal single tax band is exhausted.
PRSI doesnt apply to a non-resident.
USC won't apply unless the Irish income breaches the exemption limit (€12,012 in 2016).

There is no need to suffer withholding tax of 20% if you appoint a collection agent. (I agree with the previous poster that relying on a tenant to deduct and pay the tax to Revenue is fraught with risk.)

My blog posts should answer most questions:

http://mcgibney.ie/2013/03/14/non-resident-landlord-how-to-appoint-tax-collection-agent/

http://mcgibney.ie/2012/12/24/irish-property-living-abroad-what-to-do-about-tax/