Non-Resident Company Income Tax

Good Day,

I'm looking for info's on rental income tax for a Non-Resident company (French SCI).

As I understand, tax is always and only :

- 20% of net income (never 41% even after 33,800€ cut-off point)
- USC (1.5%,3.5% or 7%) of net income depending cut-off point

No PRSI to be paid.

Thank you for your help.

There seems to be a bit of confusion here between the tax for companies, which is dealt with through the corporation tax regime, and tax for individuals which is dealt with through the income tax regime.

Companies don't have a cut-off point or pay USC on any form of income/profits. They pay Corporation Tax on their profits and the CT on rents is charged at 25% but you also have to take into account a close-company surcharge which can add another large amount onto the tax payable.

Unless there are some special rules relating to this scenario which I am not aware of.

My understanding is that a foreign company could be considered as an "individual" and therefore dealing with income tax regime.


I'm not authorised to post any link but I've found documents from Arthur Cox "Property investments structures in Ireland" dated January 2014 stating :


"NON-IRISH RESIDENT COMPANY.

​

​

For non-resident investors the
traditional structure is to invest in
Irish real estate through a non-resident
company and thereby reduce the Irish
income tax liability to 20% of taxable​

rental income."



Or also from Matheson "Property acquisition by non-Irish resident persons" May 2013


"Investing in Irish real estate by using a non-resident company is also possible, as the standard rate of income tax at 20% applies, but this will be further dependent on the tax treatment of such a company where such company is tax resident."






In this case I would only pay 20% tax on net income (even after 33800€)?!

Well you learn something new every day. Thanks for that.

Here's a link to the articles you mentioned

[broken link removed]

[broken link removed]

You're welcome! My project is already well advanced. Mortgage approved & Internal rate of return is estimated minimum 15% on 15 years.

With everything included :
- Transaction costs (sollicitor, estate agent, surveyor, stamp duty... )
- Deductible (Capital allowance, PRTB, insurance, maintenance, repairs, waste, electrucity, gas, internet, accountant, even water !)
- Non-Deductible (Property tax, NPPR)

Regarding tax on income rent i included PRSI, USC, and 41% (Budget 2015)

At this point i think it's better to get a piece of advice from a sollicitor.

If he confirms it's only 20% tax on net rental income it would be perfect...!

This would be a first try and if positive i hope to invest more in buy-to-let.

Foreign co pays 20% but will pay 40% of any income above 33800€. You need to register the office and some more for foreign co(to pay stamp duty, register prtb etc).

You can deduct everything from rental income as it is allowed for irish company but I am not sure if foreign company can deduct 75% of foreign interest of loan - does anybody know if this is allowed? Even solicitors and accountants cant give a definite answer.

Things are going well, we are currently sale agreed.

We will not register our company, just ask for a PPS number to be used by the Irish collection agent for all taxes purpose (me).
Estimated Income 42,000€.

Not sure about 40% to be paid above 33,800. (Please see previous links).
We now have a whole year to sort this out! I will let you know once advised by a Professional accountant/ tax advisor.

Cheers

Bonjour,

J'ai trouvé votre post sur ce forum et je présume que vous êtes français à la lecture de vos commentaires. Je cherche à investir dans l'immobilier en Irlande (dublin) et si j'étais plutôt convaincu d'un investissement en direct comme propriétaire non résident, j'ai l'impression que la solution d'une société non résidente à constituer est une meilleure solution fiscale lorsque les loyers sont importants.

J'ai déjà eu un contact avec un solicitor sur place et je m'y suis rendu plusieurs fois pour des visites en vue d'un achat, j'ai aussi un contact avancé avec un courtier de crédit, j'ai donc bien avancé sur le dossier mais les particularités pour un français échappent aux irlandais.

Serait il possible de nous entretenir selon vos disponibilités, nous pourrions échanger à ce sujet car les français qui s'intéressent au marché irlandais (dublin) sont encore peu nombreux contrairement aux autres nationalités.

Cordialement,

M.HUMBERT