Cyprus Property

A

ARCH

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Has anyone considered Cyprus as a place to purchase property?
Prices seem reasonable are increasing and it appears year round rental is possible in Limasol and Nicossia.
The tax rules appear not to cause any difficulties.
The only down side appears to be the long flight.
 
ARCH said:
The tax rules appear not to cause any difficulties.
Click to expand...
What are the tax rules regarding income tax & capital gains tax for Irish investors purchasing in Cyprus?
 
Tax Rules.

Cyprus has a DTA with Ireland.

Rental income is taxable after deduction of expenses at the rates, from20% to 30% on Income over £15000 (approx €25,5000).

CGT is 20% on gains over £10,000.

No Stamp duty on properties under £100,000

NO estate or inheritance taxes.
 
To confirm should have said No stamp duty of signifance .015%.

Allso should mention there is a registration fee payable on purchase, this starts at 3%.

Mortgage available to 70%
 
ARCH said:
Tax Rules.

Cyprus has a DTA with Ireland.

Rental income is taxable after deduction of expenses at the rates, from20% to 30% on Income over £15000 (approx €25,5000).

CGT is 20% on gains over £10,000.

No Stamp duty on properties under £100,000

NO estate or inheritance taxes.
Click to expand...
I'm assuming that DTA means a Double Taxation agreement. So just let me understand this fully. For an Irish tax resident, are you saying that the Cypriot tax laws would apply, and you would have no Irish tax liability? Irish Revenue defintely wouldn't seek to 'top up' from the Cypriot rate of 30% max to the Irish rate of 42% for a top rate tax payer?
 
As resident in Ireland, Irish Revenue will definitely be looking to tax your Rental Income from Cyprus. The tax already paid in Cyprus can be deducted from your tax liability in Ireland. If you raised a mortage in Ireland you can also offset the interest against your Tax liability in Ireland as normal.

I presume if you raised the mortgage in Cyprus then Irish revenue would still allow you to offset this interest against your Irish Tax liability but I'm not sure.

It looks like you will be paying very little rental Income tax in Cyprus from the figures above, so effectively you will be paying full tax on the rental income to Irish revenue as if it was a property in Ireland.
 
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