Tax implications of selling a foreign property

T

torrevieja

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Hi folks about 2002 i put down a deposit for a Apartment in Spain, my father gave me money towards deposit it and i got a loan from credit union to pay deposit and bit off,

The price was about €63,000 in todays money think i had to get 60% of the loan it was a ten year loan i could not get a loan in ireland at the time as was a Foreign investment , anyway i got the loan in Spain and paid it off in 10 years, i never rented out the place and really used it as a family holiday home,

I never rented it out and paid my taxes property tax rates etc in spain using a tax advisor over there,

What i want to know is im thinking of selling shortly , and wondered what the implications were of selling this that i live full time in Ireland ,

I never declared this at any time here in Ireland
 
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I am not a tax expert, but this is my understanding...

Irish Income Tax
If you had income from the property, you should have declared it for Irish Income Tax. Not sure how it works, but you would have got credit for what you paid in Spain, so it wouldn't have resulted in much of a bill.

Irish Capital Gains Tax
You are liable to CGT on profits on all assets wherever they are held. Do you expect to sell it at a profit?

Again, if you have to pay Spanish CGT I expect that you would receive a credit for it against Irish CGT.

Brendan
 
I would nearly expect to sell it for the price i paid maybe i might get a little more but by the time u sell it pay taxes in spain i genuinely dont know the final price , everything i do in spain is legally done by Fiscal
i suppose cars are these prices now
 
Irish Income Tax - none as the OP said
i never rented out the place
Click to expand...
Irish CGT - definitely, but he will get credit for any CGT paid in Spain

A small complication may be that when he acquired the property, this should have been declared to Revenue but I imagine that many people do not declare the acquisition of foreign property
 
I recently sold my property in Spain.
Rough calc
selling price less auctioneers exps and legal exps
Less
purchase price plus exps (Legal and property taxes)

cgt of 19 % is payable to the Spanish authorities

Note: 3% of the sale price is retained by the spanish noteria (solicitor) to pay for any taxes that may be due. There is a small fee for this to be done. This is not allowed against the final tax bill due in Spain. This can take up to 6 months to clear.

The estate agent charges 4% plus exps on the sale price plus vat.

You then have to make a return to revenue in Ireland deducting cgt at 33%. You can offset the 19% cgt already paid in Spain.

As I said this is a rough calc. Let me know if you need any other info.
 
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