Selling a house in Ireland

F

Fenwayprk

Guest
Hi,

This is my first post here. Myself and my wife bought a house in Ireland close to 2 years ago. We are now living in the states but are thinking maybe we should sell. We just cannot afford to have a house in Ireland anymore. Our mortgage is nearly twice what we get in rent so its bleeding us dry.

What is involved in selling? If we reinvest are we still liable for paying alot of tax on the sale. What happens if any money made is transferred abroad?
 
Normally you'd place the property with an Estate Agent. Their charges can vary but I would try to negotiate a rate of o.5% of the price achieved. Advertising costs will be charged on top of this. Legal fees vary so shop around. Anyone selling a second home/investment property in Ireland is liable to a capital gains tax of 20% on the profit. I'm not sure whether you can claim any of this back in the States. Perhaps someone else can help you with this.
 
If this is the only house you own (you rent in the States), then it is considered your Principle Primary Residence (PPR) by the Revenue and so you don't have to pay the Capital Gains Tax (CGT). Your solicitor will require a cetificate from the revenue that you are exempt from CGT - there is a specific form (sorry can't remember ref no.) that you complete but this can only be done when purchasers sign contracts but before closing. Our solicitor gave us a copy of this form.
 
contact your lender and put it on interest only for 3 or 10 years you might even earn some cash per month.you done the hard work in getting the house so dont give up.
 
flyconn said:
If this is the only house you own (you rent in the States), then it is considered your Principle Primary Residence (PPR) by the Revenue and so you don't have to pay the Capital Gains Tax (CGT). Your solicitor will require a cetificate from the revenue that you are exempt from CGT - there is a specific form (sorry can't remember ref no.) that you complete but this can only be done when purchasers sign contracts but before closing. Our solicitor gave us a copy of this form.
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Don't think this is correct. The house is rented out and therefore is either an investment property or a holiday home. Furthermore I think you have to be resident before claiming the house as a PPR.
 
Your Principle Private Residence is exactly what is says on tin! It is an individuals main place of residence for the majority of the time, regardless of whether is is owned or rented.
In this case, as the o.p. has been living in the U.S. for the past 2 years, it is quite clear that their house in Ireland is not their main place of residence and they will be liable for CGT.

Check out the Revenue website and in particular the CGT guide here. There are also many existing threads in the Property Investment forum on this site about calculating CGT.
 
We have only been living in the states for 7 months. We havent started renting yet here in the states due to me only getting a job 2 weeks ago. Due to crappy immigration laws i was unable to work for 6 months while my application was pending so money is pretty tight. My wife is american before anyone asks. I get my greencard in 2 weeks.

We may move back next summer and buy somewhere closer to my family in south Galway. Our house at home is not a second home. We just cannot afford the mortgage anymore esp as the mortgage is 40% higher than what we get in rent.
 
Ok, you have owned the house for 2 years but moved to the U.S. 7 months ago. Was this house your PPR before you left?

If it was your PPR until 7 months ago, then you can sell now and shouldn't be liable to CGT on the profits. Owner occupiers get a 12 month deemed occupancy grace period in which to sell after they move out without being liable to CGT.

However, you are still liable to income tax on your rental income. Only the interest part of the mortgage payment is a tax deductable expense, so you may have a taxable profit even though the rent doesn't cover the whole (interest & capital) mortgage payment.

Also, if you paid reduced stamp duty when you bought the house due to being an owner occupier you will be liable to clawback of stamp duty due at investor rates, which would have been due to be paid when you started rented out the house.

Check out the property investment forum on this site and the Revenue link in my previous post for more information.
 
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