Renting out property abroad: Irish tax on foreign rent

Irish residents pay Irish tax on rent from property abroad, with a credit for foreign tax where there's a tax treaty. Foreign losses stay with foreign rents.

If you are resident and domiciled in Ireland, rent from a property abroad is taxable here. It may also be taxed in the country where the property is. If you aren't domiciled in Ireland, you pay Irish tax only on foreign rent you bring into the State: the remittance basis (Revenue).

Working out the profit

The rules are the same as for Irish rent: rent less costs incurred wholly for the letting. Revenue lists management, insurance, repairs, local rates and interest on a loan to buy the property. It also allows 12.5% a year wear and tear on furniture and fittings (allowed expenses). Interest is allowed only while the property is let, not from purchase to first letting, or while you or others stay rent-free.

Foreign rental losses can only be set against profits from other foreign rentals. They can't reduce your Irish rental profit or your salary, and Irish losses can't reduce foreign profit.

Avoiding double tax

Ireland may have a double taxation agreement with the country. If so, the foreign tax paid on the rent comes off the Irish tax on it, up to the Irish tax due. Where there's no agreement, the foreign tax is deducted from the rent instead (Revenue's examples). Taxes some countries charge on a deemed rent, whether or not the property was let, can't be credited.

For example, €10,000 of foreign rent on top of a €60,000 salary adds €4,000 of Irish income tax in 2026, at 40%. If €3,000 of tax was paid abroad under a treaty, the Irish income tax on the rent falls to €1,000. USC and PRSI are charged here too; whether foreign tax can be credited against them depends on the treaty.

Declaring it

Foreign rent goes on Form 11, Panel F (line 316), or on Form 12 if your non-PAYE income is small. You can pay through your tax credits only if your non-PAYE income is under €30,000 before costs and under €5,000 after costs (Revenue). Otherwise register for self-assessment and file Form 11 by 31 October.

Work it out

• Landlord tax on rental income →

Sources

• Revenue: Who should register for Income Tax self-assessment? (€5,000 net or €30,000 gross non-PAYE income) (checked 24/10/2026)
• Revenue: Form 11 2025: Tax Return and Self-Assessment (checked 24/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.