We offer a full rent collection service for non-resident landlords as part of our property management service, aiming to simplify the process for our overseas clients.
As per our last update in June 23, the process for making returns of non-resident tax has changed. In 2023, overseas landlords made returns for taxes deducted in 2022 without any change. However, it has changed again now for 2023 & 2024 non-resident taxes. By comparison, you can see a brief explanation with examples of the processes in 2022, 2023 & 2024 below.
Non-resident taxes deducted in 2022
Earnest retained the funds until we receive confirmation of the completion of the Landlord’s tax return for that Calendar year. Once earnest received confirmation, the withheld tax is refunded directly to the Landlord.
If a landlord does their own return, they should forward confirmation from the Revenue. If an accountant does the return, an email from their office will suffice.
Example
- Earnest have managed the property for 12 months (January – December 2022) and hold €4800 in non-resident tax.
- The landlord or their accountant completes the Form 11 / tax return and has their ROS account linked with the landlords IBAN.
- The confirmation is emailed to Earnest.
- Earnest then transfers the €4800 held to the IBAN provided.
- The landlord or accountant authorises ROS to deduct the monies from the IBAN.
Non-resident taxes deducted in 2023
Earnest will continue to act as the collection agent, deducting 20% of the monthly rent received. In January 2024, we will file a Rental Notification directly with the Revenue using the landlord’s PPS (Personal Public Service) number & the property LPT (Local Property Tax) number.
The Landlord or their accountant will complete their tax return (form 11) as normal. However, this time, they will get a refund from Revenue for any overpayment in tax.
NOTE: If there are two registered owners of the property, and you usually do two tax returns, then the amount sent to Revenue should be split between the owners each month. Please confirm with your accountant and earnest if this is the case.
Example
- Earnest have managed the property for 12 months (January – December 2023) and hold €4800 in non-resident tax.
- In January 2024, Earnest will submit a Rental Notification to the Revenue using the Landlords PPS.
- The full €4800 is transferred to Revenue via ROS.
- The landlord or their accountant completes the Form 11 as normal.
- Revenue will refund any overpayment to the landlord directly via the IBAN they provide on the Form 11.
Non-resident taxes deducted in 2024
Earnest will continue to act as the collection agent, deducting 20% of the monthly rent received. However Rental Notifications will be filed with Revenue each month. This will be done using the landlord’s PPS (Personal Public Service) number & the property LPT (Local Property Tax) number.
The Landlord or their accountant will complete their tax return (form 11) as normal and they will get a refund from Revenue for any overpayment in tax.
NOTE: If there are two owners registered for the property, and you usually do two tax returns, then the amount should be split evenly before sending to Revenue each month. Please confirm with your accountant and make sure to update earnest if this is the case.
Example
- Earnest collect the monthly rent for the property.
- Earnest files a rental notification each month and makes a transfer to revenue
- The landlord or their accountant completes the Form 11 as normal.
- Revenue will refund any overpayment to the landlord directly via the IBAN they provide on the Form 11.
FAQ’s
What if I do my own tax returns?
You will make your return as usual by completing a Form 11 via ROS. There is a section for non-resident landlords. You will need to link an IBAN with ROS (if you haven’t already done that). Once you have filed your return, Revenue will transfer any balance owed to the linked IBAN.
Can I still file a paper return or does it have to be using ROS?
If you usually file a paper return, you should be able to continue doing that. You will find a section for your bank details on the last page of the Form 11.
Will there be any changes for 2025?
We are not sure yet, it will depend on how successful this new system is for the Revenue. The likelihood is that it will be the same for a couple of years with minor adjustments.
Where is the tax held by Earnest?
We will no longer be holding non resident tax, it will be transferred to revenue each month.
Contact us through info@earnest.ie if you have any questions and we will do our best to help or point you in the right direction.