New Requirements for Non-Resident Landlords – July 2023

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Revenue have made a substantial change to the NLWT in line with The Finance Act 2022. As of the 1st of July 2023, a new system will go live making changes to the obligations of collections agents, tenants, and non-resident landlords. Key takeaway points:

1. A non-resident landlord is now obliged to use a collection agent, or else their tenant is obliged to deduct 20% of the gross rent each month and transfer through their MyAccount account to Revenue. This must be completed within 21 days of the rental date i.e., if rent is due on the 1st of the month, 80% should be remit to the landlord on this date and the remaining 20% remit to Revenue by the 21st of the month.

2. Revenue will no longer consider tenants or collection agents as a chargeable person in regard to the rent due once all requirements of the new system are complied with.

3. A letting agent such as Madden Property can now assume the role of a “collection agent” for our non-resident landlords. In this role we will collect the rent from the tenants on a monthly basis, transferring 80% to the landlord and remitting the 20%withholding tax directly to Revenue on a monthly basis by making a Rental Notification (RN).

4. The new Revenue platform will enable us to upload the Rental Notifications there and make payments through ROS. Landlords will be able to search the amounts that were collected on their behalf and remitted to Revenue as well. We will be able to generate a PDF acknowledgement confirming that Revenue received the funds.

5. Under the new NLWT changes, the non-resident landlord has the obligation to file their annual tax return (either filing themselves or using a tax agent), removing that obligation that used to fall to the collection agent.

Finally, we understand these changes can be confusing. We are working with Revenue to obtain as much information as possible for our landlords and will keep you informed of any updates.