Tax Refund when Leaving Ireland
If you leave Ireland, assuming you have been resident here for tax purposes, you will be taxed on your income up to the date of your departure, though you can offset a full year’s tax credits against this income. Depending on when you leave Ireland, you may be entitled to a refund upon departure. To claim this refund you must complete a Form 12 for PAYE or a Form 11 if you are self employed.
Tax Position if you rent your home when you move abroad
If you are moving abroad and choose to rent out your home in Ireland, this income is taxable in Ireland regardless of your residency status.
If you are going to rent out your home while abroad you must register the tenancy with the Private Residential Tenancies Board (PRTB) in order to claim mortgage interest relief. From the 1st January 2019 100% of the mortgage interest paid on a loan to buy/improve or repair a rental residential property can be deducted as a rental expense against the gross rents received.
Also worth noting is that for Capital Gains Tax purposes normally when you sell your main residence it is exempt from CGT. However, if you have rented your main residence for a number of years at the date of sale, the CGT exemption will be restricted on a time basis. Periods of absence where you worked in a foreign employment, or any period of absence not exceeding 4 years during which you were prevented from occupying the residence because of employment, provided you occupy the residence before and after the periods of absence is ignored.
The most important point to note is that if you do chose to rent out a property while you are resident overseas, you will need to submit an Irish tax return annually.
It is important to seek professional advice. With the many tasks involved with leaving Ireland and moving to a new country, many people forget to take advice on their tax position. For anybody moving abroad it is worth seeking tax advice on if you qualify for a tax refund when leaving Ireland or if you have obligations in Ireland to satisfy as a non resident landlord. Book a call or email firstname.lastname@example.org to discuss this further.
For a consultation to discuss your tax refund when leaving Ireland please email email@example.com