Hello
I am a FTB and planning to buy a new property around Feb/March 2016. House value €260K, I will pay 60K deposit.
Due to work, I may need to move to China by end of next year for few years. I plan to let the house (appx €1200/month) and estate agent will handle it completely. The questions I have are around tax on this rental income
Below are my estimates -
Total Rental income - €14400/year
Withholding tax - €2880/Year (20%- paid to revenue by Collection/Letting Agent???)
Expenses - ~€1800/yr (letting agent fees,PRTB,account fees, Insurance, repairs etc).
Mortgage repayment €11000/yr
So my questions are-
1. Does 75% of annual mortgage Interest will be part of expenses- I have not calculated in €1800 sum?
2. This estimates suggest I can make profit appx €2600/yr on this - Do I pay 20% tax on this value or I am missing anything here?
3. Do I buy this property now or wait till my return to Ireland- My own feeling is to buy now as it is a good property and rental market is strong.
decisions, decisions !!
Thanks for reading
I am a FTB and planning to buy a new property around Feb/March 2016. House value €260K, I will pay 60K deposit.
Due to work, I may need to move to China by end of next year for few years. I plan to let the house (appx €1200/month) and estate agent will handle it completely. The questions I have are around tax on this rental income
Below are my estimates -
Total Rental income - €14400/year
Withholding tax - €2880/Year (20%- paid to revenue by Collection/Letting Agent???)
Expenses - ~€1800/yr (letting agent fees,PRTB,account fees, Insurance, repairs etc).
Mortgage repayment €11000/yr
So my questions are-
1. Does 75% of annual mortgage Interest will be part of expenses- I have not calculated in €1800 sum?
2. This estimates suggest I can make profit appx €2600/yr on this - Do I pay 20% tax on this value or I am missing anything here?
3. Do I buy this property now or wait till my return to Ireland- My own feeling is to buy now as it is a good property and rental market is strong.
decisions, decisions !!
Thanks for reading