Non resident Rental Income

[Joe_90]

So I was having a discussion with a mate about a rental property that he has.

So at the moment he is paying 52% tax, PRSI & USC.

He is off to Australia on 1 Sept an recons he is in for a refund of €3k on his PAYE and then will only pay 22% tax and USC on his rental income going forward. I know that he is right on the Irish side but never considered that he will be so much better off than some one in Ireland who has to continue paying 52%.

Any international tax people know whether the Irish rent is added to his Australian income with a credit for the Irish tax paid or whether my mate is right?

 

[Ann1]

It depends on the type of residency he has in Australia. If he is only a temporary resident he does not have to declare his foreign income on his Australian tax return. If he is a permanent resident he will have to make full disclosure of all foreign income and will receive a credit for any foreign tax paid. He can also claim for expenses associated with the rental property but I'm not a tax expert so he would need to get professional advice if he comes under the permanent resident status.