foreign investment declaration

Discussion in 'Property investment and tenants' rights' started by faolteam, Mar 10, 2017.

  1. faolteam

    faolteam Frequent Poster

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    Hi folks just wondering I read recently about revenue wanting to know about property abroad

    Or if you have a bank account in a foreign country.

    Then I also read on there page that you do not have to declare if your property is not making an income bit confused here.

    I was a paye worker when i purchased my property then became self employed the property is paid for never was rented out or any source of income from it in fact I could not get a loan here they wouldn't give it to me because it was a foreign investment,
    I had to get it in the country I purchased the property
    It's only now with all the scaremongering letters that are supposed to be sent out which I did not receive

    What is the procedure I have also read that 15 people have got back to them since October any advice appreciated

    Not sure if this query is allowed or if I'm in the right forum, if not moderator feel free to remove
     
  2. emeralds

    emeralds Frequent Poster

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    Did you inform Revenue when you opened the account in the foreign country? I think you are obliged to (although if you have already paid tax in ireland on the money in the foreign account then you don't have to - again I think!)
    . Don't know the situation about buying a house abroad..
     
  3. noproblem

    noproblem Frequent Poster

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    Revenue will want to know how you financed your foreign property purchase and if by mortgage, how you are paying this back. You may have opened a foreign bank a'c into which you pay electricity bills, water rates, etc. Is there a management fee and how is that paid? I'd imagine these are all details the revenue might need from you. Most European countries will inform each other of nationals opening a'c's in their juristiction as per money laundering rules. There's nothing to worry about if you comply with everything and all can be accounted for, but if there's thousands used in buying the place or whatever, you'll have to come up with the paperwork for everything.
     
  4. torblednam

    torblednam Frequent Poster

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    Last edited: Mar 11, 2017
    Revenue MAY want to know how the property purchase was financed and the OP MAY have to come up with lots of his paperwork. He also may not.

    At this point there's nothing really for him to do if it's a good number of years ago and he never actually filed a return for the year in question.

    Revenue have written those letters so that people who have a tax liability can declare them before the deadline - they have absolutely no interest in people who have no undeclared tax liability sending them an avalanche of paper.
     
    Last edited: Mar 11, 2017
    Sophrosyne likes this.
  5. noproblem

    noproblem Frequent Poster

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    Funds Used to Purchase the Property
    Are there any tax implications when I buy a foreign property?
    You are not required to notify Revenue if you buy a foreign property. However, in most cases you will have to open a bank account in the country where you purchase the property, and you must notify Revenue of this on a tax return in the year the account is opened (see miscellaneous issues). You must ensure that the money used to purchase the property has been or will be fully declared for tax purposes and that all due taxes have been paid whatever the source of the money. If you have borrowed money to buy the property, the money used to repay this loan must also be declared.

    You must comply with your normal tax obligations. Using monies to buy a foreign property does not remove these obligations. Revenue will be interested in confirming that funds used have been declared for tax purposes or are not liable to tax.
     
  6. torblednam

    torblednam Frequent Poster

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    So you think Revenue have the resources and / or the inclination to query every single taxpayer in the country with foreign property as to how they financed it...?! o_O
     
  7. noproblem

    noproblem Frequent Poster

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    It's not what I think or don't think, i'm simply trying to help the 1st poster here with their original question.
    In answer to your question bout the revenues resources. No, I don't think they have the resources, but if they suspect something's amiss you'd be amazed how quickly resources can be found. Hope that helps you Torblednam.
     
  8. faolteam

    faolteam Frequent Poster

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    100
    No i didnt this was back in 2002 when i begged irish banks for a loan and they al told me to go away

    the property was 60,000 its not a 100 properties , i dont have property here cant afford it, have all my bills paid for here and the mortgage finished in 2012 was only a 10 year mortgage

    as i said was 2002 so if dont do anything will i get my hands slapped ?
     
  9. torblednam

    torblednam Frequent Poster

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    253
    No you won't, Revenue have no interest in you, and even in the unlikely event they come asking questions the answers are all there and above board.