Non-Resident Landlord Withholding Tax (NLWT) changes in Ireland 2023

From 1 July 2023, the NLWT will affect non-resident landlords, collection agents and tenants in Ireland. Here’s how.

From 1 July 2023, Revenue introduce the Non-Resident Landlord Withholding Tax (NLWT) system to Ireland.

There will be significant changes to the tax process for:

• non-resident landlords;
• collection agents of non-resident landlords; and
• tenants of non-resident landlords.

What are the key NLWT changes from July 1st 2023?

Currently non-resident landlord can fufill their tax obligations by engaging the services of a collection agent to deal with payment or having their tenant withhold and submit 20% of the rent to Revenue.

Under the new system, collection agents or tenants will make Rental Notifications (RNs) when rent is paid to non-resident landlords. Agents or tenants will withhold and remit 20% of the rent payment to Revenue, and this withheld sum will be available to the non-resident landlord as a credit when they submit their annual return.

Collection agents will need the following information to submit RNs:

• the non-resident landlord’s name and address
• the property’s Local Property Tax (LPT) ID
• the landlord’s Tax Reference Number (TRN) and tax type.

Tenant will need the following information to submit RNs:

• the non-resident landlord’s name and address
• the property LPT ID
• and landlord’s email or phone number.

Tax returns and the NLWT

The non-resident landlord is now responsible for filing an annual tax return for rental income. For individuals, the return will be a Form 11 and, for companies, the return will be a Form CT1.

Previously, if they engaged a collection agent, the agent was the chargeable person. A tax agent can file a return on your behalf, but a collection agent cannot file a return on your behalf. 

This process is a complete overhaul, including the introduction of the NLWT system and payment portal, which will also collect more detailed information related to the rental payments and the landlord.

What steps do landlords, agents and tenants need to take?

• Landlords who engage collection agents should ensure that their collection agents have the necessary information to engage with the new system.
• Collection agents‘ obligations have changed significantly.
• Tenants will pay rent to the designated collection agent or else they will have to engage with the Non-Resident Landlord Withholding Tax (NLWT) system. They will need further information from landlords to do so.

NLWT links and further updates

• Revenue will be roviding additional guidance online over the next few weeks.
• There will be a new NLWT system in myAccount and in Revenue Online Service (ROS).

For detailed advice relevant to your circumstances, talk to a trusted professional.