CGT because of becoming Irish resident

  • Thread starter NewToIreland
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NewToIreland

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Hi everybody,

I've recently moved to Ireland and I'm going to sell pretty soon my previous house in Spain that has been my principal private residence. The thing is that due to the fact of becoming an Irish resident I'm going to have to pay a 35% CGT in Spain instead of the usual 15% for residents. Anyway, I have read that there's a tax relief in Ireland for Irish residents (as I am now) that exempts capital gains tax on private residence. But I'm not sure if this applies to me because of the double taxation agreement between Ireland and Spain. Does someone know if I can get any kind of relief here in Ireland for that tax paid in Spain?

Thank you in advance.

Regards.
 
Welcome to AAM — and Ireland!

I'm afraid that exemption would only apply to a principal private residence (PPR) in Ireland, not your former home in Spain. But I'm surprised that you are being charged the full 35% as a non-resident — surely the portion of the increase in your house's value while you were still tax-resident in Spain should be taxable at the lower rate?
 
DrMoriarty said:
Welcome to AAM — and Ireland!

I'm afraid that exemption would only apply to a principal private residence (PPR) in Ireland, not your former home in Spain. But I'm surprised that you are being charged the full 35% as a non-resident — surely the portion of the increase in your house's value while you were still tax-resident in Spain should be taxable at the lower rate?
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Hi,

I asked the "Agencia Tributaria" (the Spanish equivalent to the Revenue Comissioners) explaining my personal circumstances and they said that as a non-resident I'd have to pay a 35%.

I'm a Spanish national that has been paying taxes there since I started working. Now I move abroad (to another EU country) because I've found a job and as result I'm punished having to pay a 35% instead of a 15%. What do you think?

In fact the European Comission has taken Spain to court regarding discrimination against non-residents:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/43&format=HTML&aged=0&language=en&guiLanguage=en

Regards.
 
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