Is CAT tax payable on a sold German apartment owned for more than 10 years?

H

HeatherG

Registered User
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Hi. I have another query, I'm afraid.

If I have owned an investment property (small apartment) in Berlin for more than 10 years, and sell it, making a profit on the initial purchase cost, I understand that I don't have to pay any CGT/CAT in Germany. I am Irish and resident in Ireland But:

1. Is the above correct?

2. Am I liable for CAT in Ireland?

3. Apart from costs associated with selling through an agent (though in this case the agent charges the new purchaser, not me), are there other costs associated with this transaction?

4. In order for the agent to proceed, he has to be given PoA to sign on my behalf. The agent says that must be done at the German embassy in Ireland. BUT it will take a full day to get to Dublin, plus an overnight stay (expensive!), plus a day to return home. Is it possible, instead of going to the German embassy, to give the agent in Berlin PoA by signing with, eg, a Commissioner of Oaths or a notary public?

Sorry for so many questions. Thank you very much in advance for answers to any or all of the above.
 
HeatherG said:
Hi. I have another query, I'm afraid.

If I have owned an investment property (small apartment) in Berlin for more than 10 years, and sell it, making a profit on the initial purchase cost, I understand that I don't have to pay any CGT/CAT in Germany. I am Irish and resident in Ireland But:

1. Is the above correct?

2. Am I liable for CAT in Ireland?
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1. You'll need to source advice in Germany on this. It's unlikely that many of us here will be sufficiently familiar with German taxes to be able to comment authoritatively.

2. It's CGT not CAT that you need to address. Are you Irish resident?
 
Ah, thank you for that reply/advice. CGT...got it! Yes: Irish resident. The apartment in Germany was bought 12 years ago approx, as an investment.

I THINK I'm clear that, when the property in Germany has been owned for more than ten years (as it has been in this case), it's not subject to CGT in Germany. The tax aspect of my question really refers to how the Irish Revenue will treat it - whether (despite no tax being due in Germany) Irish Revenue will want CGT.

Thanks again.
 
HeatherG said:
I THINK I'm clear that, when the property in Germany has been owned for more than ten years (as it has been in this case), it's not subject to CGT in Germany. The tax aspect of my question really refers to how the Irish Revenue will treat it - whether (despite no tax being due in Germany) Irish Revenue will want CGT.
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They will. The German exemption unfortunately isn't relevant.
 
If you are domiciled & tax resident in Rep of Ireland seems you will need to pay CGT .
Fom what you write seems Revenue will get the full 33'pc of the Gain if the German Revenue deduct 0Euro.
Worth getting professional advice. Let us know what you find out.
Fidel
 
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