Mortgage Interest Relief on Foreign Property Investment

Hi

I have recently released equity on the mortgage of my Irish permanent residence to finance the purchase of a property in Warsaw.

Is it possible for me to claim tax relief on the mortgage interest payable on the additional monies released to purchase the investment property?

I have been given conflicting advice on this matter.

Does anyone have a clear indication of whether it is possible or not

Cheers

I was told by the Revenue Commissioners that this is not possible. I did the same thing (except in Bulgaria).

In fact I just found this on the Revenue Commissioners website

"2. Can I claim tax relief on my mortgage?

Yes - if the house is situated in the State, Northern Ireland or Great Britain and is used as your sole or main residence."

In this case when they say "house" they are referring to the house purchased with the funds (which is mentioned in Question 1. of the particular section I'm looking at). It's in www.Revenue.ie, then enter "mortgage" in keywords and take it from there.

Thanks for that. I had heard that if you can obtain a letter from the Building Society that includes details of the interest paid on the loan, then this may be accepted by the Revenue. I will look into their website though, cheers.

You cannot claim owner occupier mortgage interest relief except on mortgages used to buy an owner occupied property. Presumably you are wondering if you can offset interest on the mortgage used to buy an investment property (in this case abroad) against rental income in which case I presume that you can. There may also be tax implications in the country in which the property is located.