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Foreign Rental Income in Ireland: How Rent From a House Back Home Is Taxed
Many people who move to Ireland keep a house or flat at home and let it out. Once you're Irish resident, that rent can be taxable here too, and how much depends on two things most people have never been asked about: your domicile, and whether your home country has a tax treaty with Ireland.
- If you're Irish resident and Irish-domiciled, Ireland taxes your foreign rent in full as it arises, after allowable expenses.
- If you're not Irish-domiciled, usual for people who moved here as adults, Ireland taxes only the rent you bring into Ireland, with no deductions.
- If the other country taxes the rent too, a treaty gives you a credit; without one you deduct the foreign tax (Revenue).
Do you pay Irish tax on rent from a property abroad?
- Yes, if you're Irish resident (and sometimes for a few years after you leave), but how much depends on your domicile.
- Resident and Irish-domiciled: you pay Irish tax on the foreign rent as it arises.
- Resident but not Irish-domiciled: you pay Irish tax only on the foreign rent you bring into Ireland, the remittance basis.
- Irish-domiciled. Revenue says you must pay Irish tax on income you receive from renting out a foreign property (Revenue). It's added to your other income, net of allowable expenses.
- Not Irish-domiciled. You pay Irish tax only on the foreign rental income you bring into Ireland, as money or value, and you can't claim any deductions against it (Revenue). Rent that stays in an account abroad isn't taxed here.
- Not Irish resident. Ireland generally doesn't tax rent from a property abroad. The exception is the three years after you leave, while you're still ordinarily resident: if you're Irish-domiciled and your foreign investment income, rent included, is €3,810 or more, it stays taxable here (Revenue). Residence is a day count: 183 days in the tax year, or 280 over this year and last with more than 30 this year (Revenue).
- Your Irish salary is different. The remittance basis never applies to pay for work done in Ireland; it's only about foreign income.
Are you Irish-domiciled?
- Probably not, if you moved here as an adult: domicile is broadly the country you consider your permanent home.
- At birth you take a domicile of origin, usually your father's, and keep it unless there's clear evidence you've settled permanently elsewhere and don't intend to return.
- Moving to Ireland, or getting an Irish passport, doesn't by itself change it.
- Revenue's description of domicile, the domicile of origin and the remittance basis is on its domicile page.
- It can change over time. Someone who has lived here for decades, bought a home, raised a family and has no plan to go back may have acquired an Irish domicile of choice. If that might be you, take advice before relying on the remittance basis.
- Mixed accounts are treated as income first. If an account abroad holds both savings and rent, Revenue treats transfers from it as coming from income first (Revenue TDM 05-01-21A), so keep rent in a separate account if you can. Our remittance basis guide shows what that costs with figures.
What expenses can you deduct from foreign rent?
- If you're taxed on the rent as it arises, you can deduct most expenses Irish tax law allows on Irish rent, plus 12.5% a year on furniture and fittings.
- That covers management, insurance, repairs, local authority rates, and interest on a loan to buy, improve or repair the property while it's let.
- On the remittance basis, nothing is deductible.
| Allowed (if you're taxed as the rent arises) | Not allowed |
|---|---|
| Letting agent and management fees | Pre-letting and post-letting expenses |
| Insurance | Capital expenditure, such as building an extension |
| Repairs | Your own labour if you do the repairs yourself |
| Local authority rates | The cost of travelling to the property |
| Interest on a loan used to buy, improve or repair the property, only while it's let | Interest for periods between lettings when you or others used the property rent-free |
| Furniture and fittings you own: 12.5% a year over eight years | Interest between buying the property and first letting it |
- Sources: Revenue's pages on allowed expenses and expenses not allowed.
- Losses stay abroad. A loss on one foreign property can be set against profits from your other foreign properties, but never against Irish rental profits (Revenue).
- No landlord credit. Residential Premises Rental Income Relief only applies to rented homes situated in Ireland (Revenue TDM 15-03-04), so a house abroad doesn't qualify. See rental income tax in Ireland.
- Rent you expect, not just rent you got. Revenue taxes the rent you expect to receive, even if what you actually receive is different, so a tenant who pays late doesn't automatically reduce your taxable rent (Revenue).
What if the other country taxes the rent too?
- Property is normally taxable where it is, so you may pay tax on the same rent in both countries.
- If that country has a tax treaty with Ireland, Ireland gives a credit for the foreign tax against the Irish tax on that rent.
- Without a treaty, you deduct the foreign tax from the rent before Irish tax is worked out, which is worth less.
- With a treaty: a credit. Revenue's example: €10,000 of foreign rent taxed at 40% in Ireland is €4,000 of Irish tax; €3,500 of foreign tax paid on it leaves €500 to pay here (Revenue). The credit can't be more than the Irish tax on that rent.
- Without a treaty: a deduction. Revenue's example: €10,000 of rent less €2,000 of foreign tax leaves €8,000 taxable in Ireland.
- Tax on deemed rent doesn't count. Some countries tax the rent a property could earn even when it isn't let; Revenue says that tax can't be set against your Irish tax.
- Which countries have a treaty. In Africa, treaties are in effect with South Africa, Egypt, Morocco, Zambia, Botswana and Ethiopia; Ghana's and Kenya's are signed but not yet in effect; Nigeria, Uganda and Zimbabwe have none. See our Ireland–South Africa and Ireland–Nigeria guides.
- If you're not Irish-domiciled, relief works on what you bring in. Some treaties also limit the other country's treaty relief to income you bring into Ireland, such as Article 23(5) of the South Africa treaty; that matters for dividends and interest, not for rent, which South Africa can tax in full under Article 6.
Worked example: the same flat, three outcomes
- A flat abroad earns €6,000 of rent a year, with €1,500 of allowable expenses and €600 of local tax.
- Irish income tax: €300 if Irish-domiciled with a treaty, €780 without one, and €400 if not Irish-domiciled and bringing €2,000 into Ireland.
Starting data (assumptions): Irish resident for the year; salary leaves enough room in the 20% band; rent of €6,000 for the year, converted to euro; €1,500 of allowable expenses (agent fees, insurance, repairs); €600 of tax paid on the rent in the property's country. Income tax only: USC also applies to rent that's taxable here.
| Irish-domiciled, treaty country (credit) | Irish-domiciled, no treaty (deduction) | Not Irish-domiciled, €2,000 brought in | |
|---|---|---|---|
| Rent taxable in Ireland | €6,000 − €1,500 = €4,500 | €6,000 − €1,500 − €600 = €3,900 | €2,000 (no deductions) |
| Irish income tax at 20% | €900 | €780 | €400 |
| Less credit for foreign tax | −€600 | — | — |
| Irish income tax | €300 | €780 | €400 |
The third column assumes a country without a treaty, such as Nigeria or Zimbabwe; with a treaty, a credit for the foreign tax on the amount brought in may reduce it. In all three columns taxable non-PAYE income is under €5,000 and gross under €30,000, which is why the PAYE worker in this example can use Form 12 (next section).
Which form do you use, and can it go through payroll?
- With taxable non-PAYE income of €5,000 or less and gross non-PAYE income of €30,000 or less, a PAYE worker declares foreign rent on Form 12 in myAccount.
- They can pay the tax by having Revenue reduce their tax credits.
- Above either limit you're in self-assessment and file Form 11.
- Form 12 and reducing credits. Taxable non-PAYE income of €5,000 or less and gross non-PAYE income of €30,000 or less (Revenue). See our Form 12 guide.
- Form 11 above that. You become a chargeable person, register for self-assessment and pay preliminary tax. See our Form 11 guide.
- USC and PRSI. Rent taxable in Ireland counts towards your income for USC. PAYE workers with more than €5,000 of unearned income also pay PRSI on it (Class K), according to Citizens Information. Our rental income guide covers both.
- Every year, not just once. Foreign rent is declared on the return for each year it's taxable here, alongside any PAYE refund you're claiming.
Which exchange rate do you use?
- Revenue publishes average annual rates for 13 currencies (Tax and Duty Manual Part 04-06-12), none of them African, and doesn't say which rate to use for others.
- For naira, cedi, shillings or another unlisted currency, we use the rate you actually received, or a published central bank rate for the year, and note the rate used.
- For rand, an ECB annual average rate is available.
- Revenue's list covers the Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Danish krone, Indian rupee, Japanese yen, Norwegian krone, Russian ruble, Swedish krona, Swiss franc and US dollar for 2021 to 2025 (the ruble for 2021 only) (Revenue manual 04-06-12).
- Be consistent. Use the same method for rent and expenses in a year, and keep the bank statements that show the conversion. Our currency converter shows the current ECB rate for a quick check; for the return, use an annual average or the rate you actually received.
What Revenue actually asks for
- The property's address, the rent you expect for the year, each expense with receipts, and the foreign tax paid with proof of it.
- On the remittance basis, also the amounts you brought into Ireland.
- You declare it on the year's Income Tax Return in myAccount (Form 12) or ROS (Form 11).
- Tenancy records: lease or letting agreement, and statements from the letting agent showing rent and fees.
- Expenses: invoices and receipts for each deductible cost, and the loan statement showing interest if you claim it.
- Foreign tax: the assessment or withholding certificate from the other country's tax authority.
- Remittance basis: bank statements showing what came into Ireland, and from which account.
- Exchange rates: a note of the rate you used for each amount.
- Keep everything for six years after the end of the tax year.
If you'd rather not work through it yourself, our tax return service covers foreign rent together with your PAYE refund.
Where do you start?
Answer two questions for each year since you moved: were you Irish resident, and are you Irish-domiciled? Those decide whether Ireland taxes your foreign rent as it arises, only when you bring it in, or not at all.
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Questions we get asked
Do I have to declare rent from my house abroad in Ireland?
If you're Irish resident and Irish-domiciled, yes, every year, after allowable expenses. If you're not Irish-domiciled, only the rent you bring into Ireland is taxable here, with no deductions. If you're not Irish resident, Ireland generally doesn't tax it, except for up to three years after you leave if you're Irish-domiciled, still ordinarily resident and have €3,810 or more of foreign investment income.
Can I deduct mortgage interest on a property abroad?
Yes, if you're taxed on the rent as it arises: interest on a loan used to buy, improve or repair the property, for the periods it's let. Not for the time before it was first let, or when it was used rent-free.
Can a loss on my foreign property reduce tax on my Irish rental income?
No. A foreign rental loss can be set against profits from your other foreign properties, but not against Irish rental profits.
I already paid tax on the rent in my home country. Do I pay again in Ireland?
Possibly. With a tax treaty, Ireland credits the foreign tax against the Irish tax on that rent, so you pay only the difference. Without a treaty, you deduct the foreign tax from the rent and pay Irish tax on the rest.
Which exchange rate should I use for rent in naira or cedi?
Revenue's published average rates don't cover African currencies, and Revenue doesn't say which rate to use for them. We use the rate you actually received when the money was converted, or a published central bank rate for the year, and keep a note of the rate and its source.