3littlefish
Registered User
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- 43
I am interested in buying a modest family home in Dublin to rent out. I want to spend only around €150,000 and in the areas I am looking I can expect to receive a monthly rent of around €1,200pm. We will be self financing the purchase so no mortgage to begin with at least.
I know that property is not a great capital investment right now but at that level we can accept the risk of a drop in value as the returns are far better than those available in deposit and there is the possibility of medium to long term capital growth.
I am a PAYE worker paying tax at 41% and my spouse is a homemaker and we currently do not own any other property.
I am looking for the more advantageous way to buy this property, should we
1 - simply buy the house in our joint names and register it with PTRB and claim our costs and expenses and pay our tax on any net rental income.
2 - buy it in my spouses name only, register it with PRTB and have the rental income linked to my spouse alone.
3 - set up a limited company, make shareholder loans to the business of €150,000 and purchase the asset through the business. Pay corporation tax on any net profit instead of income tax???. Pay my spouse a modest salary from the business from any rental income.
Any thoughts on which of these approaches may be the best or simply discuss the pros and cons of each.
Also what incentives or scheme currently exist to help property investors?
Lastly as my partner has been a homemaker looking after kids under 12 for the past 12 years(with credited PRSI contributions) is there a back to work incentive to allow my spouse start a business and not pay any income tax for the first 2 years??
I'm interested in looking at all of the options if anyone knowledgeable is interested in getting involved in this discussion I would be most grateful
I know that property is not a great capital investment right now but at that level we can accept the risk of a drop in value as the returns are far better than those available in deposit and there is the possibility of medium to long term capital growth.
I am a PAYE worker paying tax at 41% and my spouse is a homemaker and we currently do not own any other property.
I am looking for the more advantageous way to buy this property, should we
1 - simply buy the house in our joint names and register it with PTRB and claim our costs and expenses and pay our tax on any net rental income.
2 - buy it in my spouses name only, register it with PRTB and have the rental income linked to my spouse alone.
3 - set up a limited company, make shareholder loans to the business of €150,000 and purchase the asset through the business. Pay corporation tax on any net profit instead of income tax???. Pay my spouse a modest salary from the business from any rental income.
Any thoughts on which of these approaches may be the best or simply discuss the pros and cons of each.
Also what incentives or scheme currently exist to help property investors?
Lastly as my partner has been a homemaker looking after kids under 12 for the past 12 years(with credited PRSI contributions) is there a back to work incentive to allow my spouse start a business and not pay any income tax for the first 2 years??
I'm interested in looking at all of the options if anyone knowledgeable is interested in getting involved in this discussion I would be most grateful
