Require an Irish Collection Agent?
Appointing a Resident Responsible Person
If you are a non resident landlord, then you are required to appoint a resident responsible person who takes on obligations regarding your taxes in Ireland. This Irish resident responsible person may be :
- The tenant: They satisfy the requirement by deducting 20% from the gross rent before completing the required documentation and submitting this to Revenue.
- A collection agent: The collection agent needs to be resident in Ireland and assumes legal responsibility for the tax liabilities in relation to the rental income of the property. They also ensure that all tax reporting obligations relating to this rental income are satisfied.
You cannot make a Tax Return for a non-resident landlord without one of the above in place!
Unless you have a close relationship with the tenant we do not recommend this option. You are putting yourself at risk of the tenant not remitting the deductions to Revenue.
Irish Collection agent
The Collection Agent may be any resident person. Examples include:
- A friend or family member: Being a Collection Agent is a significant responsibility. If you choose a friend or family member for this role, they should get independent professional advice on their responsibilities attached to this role.
- A Letting Agent, a Tax Agent, or other professional person: Some Letting agents are offering their services as your Irish Collection Agents, but many more are not as it requires an understanding of the Revenue obligations.
It is worth noting that this is not a new requirement. However, The Irish Revenue did not enforce this requirement before the 2020 tax year and accepted tax returns without a tenant deduction completed or a collection agent in place.
Red Oak as Collection Agent
Red Oak provides a service where we can act as collection agent for non resident landlords.
To find out more, contact us for a no obligation consultation.