I think you're right.Who are the landlords that don't pay tax?
Please be very specific in any answer.
Tax is paid on rents earned by REITs, as they must distribute rental profits to shareholders.
I find this particular interesting. The RPZ's were being put in place to put a lid on the 'market rent' increases that were way ahead of salary increases, or inflation rates.Landlords selling up are being vilified with headlines of 10% increases in rent each year when a huge number of them are stuck with rentals upto 40% below market price. Someone with a new rental charges the highest rent possible, say €2,000 a month, while the small landlord with one property the last 15 years, still has it rented out at say €1300 a month and can only increase it €26 a year.
With new rentals entering the market at higher rents then the average increases.I find this particular interesting. The RPZ's were being put in place to put a lid on the 'market rent' increases that were way ahead of salary increases, or inflation rates.
Couple points I guess: First, how did rents increase as much as they did, despite RPZ's in place? For me it reads like the legislation was by and large 'worked around'. There are a few threads even in this forum where ideas are being discussed on how to 'work around' the RPZ limits.
So the spirit of the legislation is clearly not working. Maybe we should lobby to link rent increases with CPI instead, as it is done in some other countries.
Second point: what exactly is the 'small landlord' complaining about? That less profit is being made compared to the neighbour that worked around rent increase limits? Quite a few complaints here are regarding the requirement to pay tax on rental income. So clearly, even 'small landlords' are still making a profit. What some of the 'small landlords' seem to have forgotten is that being a landlord is a business, and might even require putting in some hours, deal with tenants, etc. Some landlords even decide to not rent it out at all (anymore), so clearly don't want/need the money. If you don't like to work for it, sell the place.
I find the notion of 'I demand that I can increase the rent from €1300 to €2000 because!' rather irritating, to be honest.
And yes, I am aware that it isn't black and white.
It isn't really. Previously, rental income was capped at 40% and not liable for PRSI and USC. The government changed this overnight and meant the tax paid by landlords increased from 40% to 51 or 52%. As a result, rents needed to increase by approximately 22-24% for the landlords to be left in the same net position as before. Tenants lost out, taxman gained big time and no difference for landlords.I think it would be impossible to have different rates of income tax on different types of income??
Too much chance of abuse??
they will sell up because of regulatory, over taxation, threats of SF taking power and restricting who they can sell their asset to.It's terrible that private landlords are paying tax rates in line with the general population and are getting out when property prices have moved ahead of even Celtic Tiger levels. What WILL they do with their accumulated wealth?!?
I would love to hear your thoughts on the future of the rental sector in ireland? Have you hear there's a crisis this year for third level students unable to find accommodation? How do you think this will be resolved? Are you of hte SF persuasion that w just need to build 20,000 social houses a year for the next ten years and that'll solve it all?It's terrible that private landlords are paying tax rates in line with the general population and are getting out when property prices have moved ahead of even Celtic Tiger levels. What WILL they do with their accumulated wealth?!?
REITs are companies who earn rental income from commercial or residential property. They are generally exempt from Corporation Tax (CT) on income from their property rental business only. Also they are generally exempt from chargeable gains made on the disposal of assets of their property rental business only.Who are the landlords that don't pay tax?
Please be very specific in any answer.
Tax is paid on rents earned by REITs, as they must distribute rental profits to shareholders.
shareholders are only taxed at their marginal rate if resident in Ireland. A lot of REITS and share in REITS are owned by foreign investors, hence, they pay nothing. Also, see my posting about about Corporate Tax as per the Revenue website.I think you're right.
If I'm not wrong 85% of REIT income must be distributed to shareholders (on which 12.5% corporation tax is due). Then the shareholder taxed at their marginal rate.
I guess REITs are better able to make use of debt. But as far as I can tell the tax treatment is no more favourable than for amateur landlords.
Rents increased by 10 or 15% last year because the calculation is based on rentals registered with the Residential Tenancy Board (RTB). So you have existing rentals increasing by a maximum of 2% per annum, combined with a load of tenancies ending and the property being sold and new properties coming into the system as new rentals.I find this particular interesting. The RPZ's were being put in place to put a lid on the 'market rent' increases that were way ahead of salary increases, or inflation rates.
Couple points I guess: First, how did rents increase as much as they did, despite RPZ's in place? For me it reads like the legislation was by and large 'worked around'. There are a few threads even in this forum where ideas are being discussed on how to 'work around' the RPZ limits.
So the spirit of the legislation is clearly not working. Maybe we should lobby to link rent increases with CPI instead, as it is done in some other countries.
The issue is existing tenancies are 'stuck' charging way below market rent indefinitely. If CPI is increasing 10% per annum, your costs are increasing 10% are well. So you are in the same position as before re way below the rent you could be charging. And I'll reiterate, no interest in charging maximum rent, but a fairer rent for the property is what landlords should be entitled to do. Not required/forced to subsidise housing costs of others. Hence why they are now leaving in droves. Eviction notices up 100% from last year and going to get even worse again in the next 12 months.I find this particular interesting. The RPZ's were being put in place to put a lid on the 'market rent' increases that were way ahead of salary increases, or inflation rates.
Couple points I guess: First, how did rents increase as much as they did, despite RPZ's in place? For me it reads like the legislation was by and large 'worked around'. There are a few threads even in this forum where ideas are being discussed on how to 'work around' the RPZ limits.
So the spirit of the legislation is clearly not working. Maybe we should lobby to link rent increases with CPI instead, as it is done in some other countries.
Landlords are complaining about:Second point: what exactly is the 'small landlord' complaining about? That less profit is being made compared to the neighbour that worked around rent increase limits? Quite a few complaints here are regarding the requirement to pay tax on rental income. So clearly, even 'small landlords' are still making a profit. What some of the 'small landlords' seem to have forgotten is that being a landlord is a business, and might even require putting in some hours, deal with tenants, etc. Some landlords even decide to not rent it out at all (anymore), so clearly don't want/need the money. If you don't like to work for it, sell the place.
I find the notion of 'I demand that I can increase the rent from €1300 to €2000 because!' rather irritating, to be honest.
And yes, I am aware that it isn't black and white.
Rental profits by non-resident private landlords are only taxed at 20% though.shareholders are only taxed at their marginal rate if resident in Ireland. A lot of REITS and share in REITS are owned by foreign investors, hence, they pay nothing. Also, see my posting about about Corporate Tax as per the Revenue website.
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