Hi
I recently acquired an investment property in Ireland and am renting it out for a gross annual rent of eur 16,200 or 9%. I’m looking at the tax implications of getting further investment properties in Ireland due mainly to the good (gross) rental yields and also the possibility of capital appreciation in the medium term. I’ve been working outside of Ireland / EU for a number of years and am not concerned with my tax position in my new country as a result of possible investments in Ireland.
If someone could read through the below assumptions / questions and advise if anything is incorrect or perhaps left out that would be great.
· My gross rental income can be reduced by management charges / legal charges / letting costs / advertising costs / renovation costs / plumber electrician costs / etc
· I’ll pay 20% on net income up to eur 32,800 and 41% on anything over it
· I’m not entitled to any tax credits as I’m a non tax resident
· USC for 2013 is 2% to eur 10,036, 4% between eur 10,027 to eur 16,016, 7% over eur 16,017
o Is this calculated on gross or net rental income (and also are capital allowances deductible in finding your net income?)
o As I pay USC, PRSI isn’t applicable to me?
· Property tax – if you have a few properties in total (but not individually) amounting to over eur 1m do you pay property tax at 0.18% overall or do you pay 0.18% on eur 1m and 0.25% on the balance over eur 1m?
o I believe property tax is not tax deductible to estimate your net rental income?
· Household charges are abolished from 1 Jan 2013 and Non-Principle Private resident charges abolished from 1 Jan 2014
o These are not tax deductible
· PRTB still applies at eur 90 per tenancy (after 01/01/11) and is not an annual charge
o This is tax deductible
Thanks
Eoghan
I recently acquired an investment property in Ireland and am renting it out for a gross annual rent of eur 16,200 or 9%. I’m looking at the tax implications of getting further investment properties in Ireland due mainly to the good (gross) rental yields and also the possibility of capital appreciation in the medium term. I’ve been working outside of Ireland / EU for a number of years and am not concerned with my tax position in my new country as a result of possible investments in Ireland.
If someone could read through the below assumptions / questions and advise if anything is incorrect or perhaps left out that would be great.
· My gross rental income can be reduced by management charges / legal charges / letting costs / advertising costs / renovation costs / plumber electrician costs / etc
· I’ll pay 20% on net income up to eur 32,800 and 41% on anything over it
· I’m not entitled to any tax credits as I’m a non tax resident
· USC for 2013 is 2% to eur 10,036, 4% between eur 10,027 to eur 16,016, 7% over eur 16,017
o Is this calculated on gross or net rental income (and also are capital allowances deductible in finding your net income?)
o As I pay USC, PRSI isn’t applicable to me?
· Property tax – if you have a few properties in total (but not individually) amounting to over eur 1m do you pay property tax at 0.18% overall or do you pay 0.18% on eur 1m and 0.25% on the balance over eur 1m?
o I believe property tax is not tax deductible to estimate your net rental income?
· Household charges are abolished from 1 Jan 2013 and Non-Principle Private resident charges abolished from 1 Jan 2014
o These are not tax deductible
· PRTB still applies at eur 90 per tenancy (after 01/01/11) and is not an annual charge
o This is tax deductible
Thanks
Eoghan