CGT on foreign investment property sale

[Harfang]

Trying to fully understand sale of an investment property in Hungary.

At a high level is this correct?
Take a simple example, bought in 2005 for 50K. Sell in 2023 for 100K.
CGT in Hungary = 50k * 15% = 7,500
CGT in Ireland = 50k * 33% = 16,500

Do you get a credit for the 7,500 in Hungary? If so then it is 9,000 CGT to pay in Ireland?

Also, does the fact there is an o/s mortgage on the property matter for the CGT calculation?
Thank you.

 

[AAAContributor]

Do you get a credit for the 7,500 in Hungary?

Example calculation here:

Foreign Capital Gains Tax (CGT) relief

If you dispose of a foreign property you may have to pay Capital Gains Tax (CGT) in the country that the property is located in

www.revenue.ie

Double Taxation Treaty between Ireland and Hungary:

https://www.revenue.ie/en/tax-professionals/documents/double-taxation-treaties/h/hungary.pdf

Per Article 23 paragraph 2a of the above treaty, Ireland gives a credit for the Hungarian tax.

does the fact there is an o/s mortgage on the property matter for the CGT calculation?

No.

The chargeable gain of an asset is the difference between the amount you received for it (sale price) and the amount you paid for it (purchase price) and any ‘allowable expenses’:

How to calculate CGT

This page explains how Capital Gains Tax is calculated

www.revenue.ie

Don't forget the annual exemption (x2 if property owned jointly).