Hi,
I am about to recieve some monies approx 200k and am looking at buying something in ireland around 300k with a view to build up some rental income.
As i understand it some tax relief can occur on the interest portion of the mortgage, however i dont see the exact taxation rates etc associated with property.
Say for argument sake the income generated is 40K per year and the loan is 100K what sort of taxation will apply from a personal perspective. (i understand maintenance etc can be deducted but just to keep the picture clean lets ignore for now).
Would it be better for me to contain the property in an offshore structure / company structure in the interests of mitigation of the taxable income ?
Indeed i have negative equity on my own property but have no interest in paying down this negative equity (tracker +1%).
Which is the best way legally to do this from a taxation / financial perspective ? (thinking outloud) As i see it it may be better to have the property owned by an isle of man company and get the income sent to that company for taxation...
I am about to recieve some monies approx 200k and am looking at buying something in ireland around 300k with a view to build up some rental income.
As i understand it some tax relief can occur on the interest portion of the mortgage, however i dont see the exact taxation rates etc associated with property.
Say for argument sake the income generated is 40K per year and the loan is 100K what sort of taxation will apply from a personal perspective. (i understand maintenance etc can be deducted but just to keep the picture clean lets ignore for now).
Would it be better for me to contain the property in an offshore structure / company structure in the interests of mitigation of the taxable income ?
Indeed i have negative equity on my own property but have no interest in paying down this negative equity (tracker +1%).
Which is the best way legally to do this from a taxation / financial perspective ? (thinking outloud) As i see it it may be better to have the property owned by an isle of man company and get the income sent to that company for taxation...