Updated rules for non-resident landlords

The process by which tax is collected from non-resident landlords is changing from 1 July 2023.

How is this different to the current regime?

Under the current regime, a non-resident landlord had the choice to either:

1. Instruct the tenant to withhold 20% tax on the payment of rent, where no collection agent is appointed.
2. Appoint a collection agent and have the tenant pay 100% of the rent directly to the agent; the agent is then responsible for filing the annual tax return, and the requirement to deduct 20% does not apply.

Changes applicable from 1 July 2023 can be summarised as follows:

• Revenue will introduce the Non-Resident Landlord Withholding Tax (NLWT) system.
• Both tenants and collection agents may deduct withholding tax at the standard rate of tax (currently 20%) from rent paid and remit a Rental Notification (RN) via the NLWT platform, which will be available via myAccount and ROS.
• This RN and accompanying payment of tax must be submitted within 21 days of paying the rent to the non-resident landlord.
• The collection agent will no longer be designated as chargeable and will no longer be responsible for filing a Form 11/CT1.
• Responsibility for filing an annual tax return now lies with the non-resident landlord.
• Tenants and/or collection agents will also be required to submit additional information such as the LPT identifier of the rental property, including the full address of the property that is let, alongside the name, address and tax identification number of the non-resident landlord.

The entire process is set for a complete overhaul, namely the introduction of the NLWT system and payment portal, in addition to the collection of more detailed information in relation to the non-resident landlord.

While these changes remain subject to ministerial approval, Revenue have committed to providing additional information and guidance on the NLWT system via their NLWT Information Portal in the coming weeks. Should you have any queries, our experienced tax team will be happy to share their insights with you.