Double taxation on international property

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gary1234

Guest
If I dispose of some land in France and pay their cgt of 19% it leaves a shortfall of 6% here in Ireland. My question is

a. Can I offset the cost of my Irish mortgage against the french 19% and or the Irish 6%??

b. Can I offset any other expenses against the cgt either in Ireland or France??
 
If you are resident and domiciled in Ireland then the Gain is subject to Irish CGT with a credit availble for the tax paid in France.

You are entitled to deduct the cost plus any associated costs stamp duty legal fees. Indexation may also apply. You are also entitled to deduct costs of disposal, legal, auctioneers ect.

Can't comment on the French deductions.
 
thanks for that but do you know if i can offset an irish mortgage against french land for paying the irish portion of cgt
 
What has the mortgage got to do with CGT?

Maybe you mean mortgage interest relief on rental income?

You will need to do a French tax return, there are accountants who specialise in this and you'll also need advice from an accountant on what if any liabilites arise in Ireland.
 
no rental income as it is only a piece of land we were planning to build a house on. so it is interest paid on the mortgage, i speak of, thanks for help.
 
gary1234 said:
no rental income as it is only a piece of land we were planning to build a house on. so it is interest paid on the mortgage, i speak of, thanks for help.
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Mortgage repayments (interest and/or capital) aren't deductible for CGT purposes (in Ireland anyway, don't know about France), regardless of what the asset is or what you used it for.
 
Be careful here.

As far as I recall, the tax treaty between Ireland and France was signed back in the late 1960's.

Capital Gains Tax was introduced in Ireland in the mid 1970's.

Therefore, the tax treaty might not cover Capital Gains Tax in Ireland and you might not be allowed a credit in Ireland for the tax paid in France. One of the Ryan family (of Ryanair fame) took a case to the Supreme Court a few years ago on this matter related to the Ireland-Italy treaty, which also pre-dates the introduction of CGT to Ireland, but the result might not be applicable here (different terms in this treaty)

I would definitely consult a tax advisor in Ireland to be certain before filing your Irish capital gains tax return. At the very least, I would "express a doubt" in the return if you're claiming the credit so that you're protected from interest and penalties.
 
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