Foreign rental income

How to calculate your taxable foreign rental income

Your taxable foreign rental income is the foreign rent you expect to receive even if this figure is different from the foreign rent you actually receive. You subtract your allowable expenses and deductions from your taxable foreign rental income leaving the net amount.

If you are taxed on the remittance basis you have to pay tax on the total amount, without claiming expenses or deductions.

You may make a loss from renting out your foreign property. If so, you can offset that loss against profits from other foreign rental properties that you own. You cannot offset a loss from foreign rental properties against Irish rental profits.

The Income Tax is calculated on the net foreign rental amount on your Form 11 or Form 12 tax return.

You may have other income during the year, such as a Pay As You Earn (PAYE) employment, a pension or other non-PAYE income. If you do, you may pay the tax due on your foreign rental income by reducing your tax credits.

To do this, from 2015 your gross non-PAYE income must be less than €30,000 and your net non-PAYE income must be less than €5,000. For previous years your gross non-PAYE income must be less than €50,000 and your net non-PAYE income must be less than €3,174.

Next: Foreign rental income and double taxation