tax on mortgage-free rental property

[tullyross]

I am thinking of renting out my home in Ireland as I live abroad and rarely use it. The property has no mortgage on it that could be used as tax relief. How much tax would we roughly be paying if I were to rent out the house for 5,000 per year? I am working and paying tax in Spain but the wages are very low compared to Irish equivalent so how would they assess me for tax? Thanks

 

[Domo]

As a non-resident individual you would need to appoint an agent to acto on your behalf with the Revenue otherwise the tenent will be obliged to withhold basic rate tax from the rent and pay this over to the Revenue.
As a non-resident you will be entitled to your a proportion of your personal tax credits based on the proportion of Irish income over total worldwide income (which would probably be minimal - so the tax position would be:

Income €5,000 @ 20% = €1,000 less the propoetion of tax credits due.

You would then probably be liable to tax in Spain on this income, but get a credit for the Irish tax paid

www.taxingtimes.ie

 

[tullyross]

thanks very much for the advice domo, will check out the tax situation in Spain.