Non-Resident Landlord Help

Hi guys,

I'm in a bit of bother and I've tried to find the answers online but not had much luck as my scenario is a little bit different. I'll try and not bore you too much and hope it all makes sense

I have lived in Australia now for over 4 years. I previously lived in NI. I own a house outside Dublin with a friend who is an Irish National. He owns 60% of the property and I own 40%.

I've just applied and received a PPS number as I intend to do all my tax returns for the last few years. From what I can see is that the tennant should have deducted 20% of his rent for a non-resident landlord. I'm guessing then that he should only deduct 20% from my portion of the rent. E.G if rent is 1,000 a month, then 40% of that is mine (400). The tennent then should be withholding 20% from that portion which is 80 euro. Am I right? Really complicates things I know.

Needless to say this was not done and I was unaware of this and want to make things right.

What is the best way to address this? Could I nominate by friend/partner as my agent to collect my portion of the rent and if so what implications would it have for him? Also what happens to the last 4 years? The rent is paid into a joint bank account of ours.

Hoping someone can make sense of that and help me out. Thank you all

mouseman said:

Hi guys,

I'm in a bit of bother and I've tried to find the answers online but not had much luck as my scenario is a little bit different. I'll try and not bore you too much and hope it all makes sense

I have lived in Australia now for over 4 years. I previously lived in NI. I own a house outside Dublin with a friend who is an Irish National. He owns 60% of the property and I own 40%.

I've just applied and received a PPS number as I intend to do all my tax returns for the last few years. From what I can see is that the tennant should have deducted 20% of his rent for a non-resident landlord. I'm guessing then that he should only deduct 20% from my portion of the rent. E.G if rent is 1,000 a month, then 40% of that is mine (400). The tennent then should be withholding 20% from that portion which is 80 euro. Am I right? Really complicates things I know.

Needless to say this was not done and I was unaware of this and want to make things right.

What is the best way to address this? Could I nominate by friend/partner as my agent to collect my portion of the rent and if so what implications would it have for him? Also what happens to the last 4 years? The rent is paid into a joint bank account of ours.

Hoping someone can make sense of that and help me out. Thank you all

Click to expand...

If the rent has always been paid into the joint account, then I would think that ,notwithstanding that you haven't nominated your mate as your agent, he would be regarded as having been your agent.

You should talk to an Irish tax advisor first though.

dereko1969 said:

If the rent has always been paid into the joint account, then I would think that ,notwithstanding that you haven't nominated your mate as your agent, he would be regarded as having been your agent.

You should talk to an Irish tax advisor first though.

Click to expand...

It's a joint account though, so technically there is a payment to non-resident landlord. Besides the agent also obliged to deduct 20%.

I wouldn't worry too much about what has passed. Your bigger concern is getting your returns up to date and any liabilities, penalties and interest paid.

thanks guys. I'm working on the returns now and fully intend to get up to date and pay anything that is owing.

I just want to make sure its done right as I know ignorance is no excuse. I think I might have to try and get in contact with a tax advisor.