Non Resident Landlord - tax liability

[Happy Girl]

Trying to do a bit of research and a bit confused to say the least. We are looking at relocating to Spain in a couple of years (living there for 8-9mths of the year) and the plan is to rent out our house here in Ireland to generate an income to live on in Spain. We envisage that we will not be working over there. I understand the withholding tax aspect on the rental income. However because we will be in Spain 8-9 months per year and will have no employment income are we still entitled to tax credits to offset against our tax liability on the rental income. Basically the way I am looking at it is
annual rental income 12,000
withholding tax @20% 2,400
Married couple tax credit 3,300
So therefore we would have no tax liability. Is this correct?

 

[asdfg]

Don't forget to deduct any expenses ie insurance, write down contents, maintainence, accountancy fees etc so your return will look something like the following
Rental income 12,000
All exps. Say 2,000
Liable to tax 10,000
Tax at 20% 2,000
Married credits 3,300
No tax due
You can avoid the tenant paying the tax directly to revenue by appointing an agent in Ireland
If the tenant does pay revenue then you will be entitled to a refund.

 

[Happy Girl]

Many thanks for that asdfg. So although I will not be working in Ireland and will be living in Spain for the majority of the time do I still get tax credits to write off against my tax liability on the rental income?

 

[Joe_90]

On the basis that you are domiciled in Ireland you can claim the portion of your credits that relate to your Irish income over your worldwide income.

So if you only have Irish income you get 100% of the credits. May be subject to tax in Spain as you reside there.