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I am an Irish passport holder but I live in the UK I own a property which I have a tourist licence and NIE number via my British passport. (Applied for my Irish passport after I bought the house) my question is what tax do I pay on the rental income from my property and can I offset costs against it?
Many tha
You pay 24% of the rental income on a quarterly basis.
Yes, there is a big list of deductible expenses. See this link from Costa Luz lawyers Rental
Posted: Tue Feb 20, 2024 8:54am
Super helpful member
Posted: Tue Feb 20, 2024 10:40am
Helpful member
I assume this is a slightly leading question around whether you should be paying 19% tax with allowances on your rental income or 24% tax with no allowances (based on whether you classify as an EU/non EU individual given your passport situation).
Firstly, I'll caveat this with I do not know for certain however I think the determining factor on the tax rate is residency (it is after all called a non-resident tax rather than a non-citizen tax).
So, if you are resident in the UK you are a non EU resident, I think you should be paying 24% despite having an Irish passport - the tax rate been determined by your residency position rather than your passport position (Irish).
Hopefully someone will come along who actually knows for certain!
Edit - this position seems to be supported by some of the comments (by Costa Luz employees) in the Costa Luz article link posted above)
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Posted: Tue Feb 20, 2024 12:07pm
George55 wrote on Tue Feb 20, 2024 10:40am:
I assume this is a slightly leading question around whether you should be paying 19% tax with allowances on your rental income or 24% tax with no allowances (based on whether you classify as an EU/non EU individual given your passport situation).
Firstly, I'll caveat this with I do not know for certain however I think the determining factor on the tax rate is residency (it is after all called a non-resident tax rather than a non-citizen tax)....
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So, if you are resident in the UK you are a non EU resident, I think you should be paying 24% despite having an Irish passport - the tax rate been determined by your residency position rather than your passport position (Irish).
Hopefully someone will come along who actually knows for certain!
Edit - this position seems to be supported by some of the comments (by Costa Luz employees) in the Costa Luz article link posted above)
Yes I think you are right sadl
Posted: Tue Feb 20, 2024 1:20pm
Legendary helpful member
marcliff wrote on Tue Feb 20, 2024 8:50am:
You pay 24% of the rental income on a quarterly basis.
Yes, there is a big list of deductible expenses. See this link from Costa Luz lawyers Rental
The information about deductibles is incorrect. Since 1 January 2021, UK citizens joined the list of non-EU, Third Country Nationals, so in addition to the tax rate hike to 24%, there are no deductibles allowed.
Kind regards,
Kim
Posted: Tue Feb 20, 2024 8:57pm
Legendary helpful member
The tax rate on your rental income is determined by your country of residence, not by the passport you hold. So as a UK resident it is 24% on gross rental (no deductions allowed), payable quarterly in Spain.
