Undeclared Foreign Property - The new Bogus Non Resident a/c?

Re: Foreign Property - The new Bogus Non Resident a/c?

Let's face it,when the revenue come knocking the irish banks will drop every account holder they have with a second mortgage in it,regardless of where the "investment" property happens to be !
 
Re: Foreign Property - The new Bogus Non Resident a/c?

thewatcher said:
Let's face it,when the revenue come knocking the irish banks will drop every account holder they have with a second mortgage in it,regardless of where the "investment" property happens to be !
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Yes maybe but that won't uncover property which is not mortgaged
 
Or property that is mortgaged overseas ......
I didn't think that actually owning an overseas property was something that needed to be declared to the revenue e.g. If I buy a holiday home abroad and don't rent it out so not making any income from it, I would only need to inform the revenue when I sell it and pay CGT
 
Abbeykiller said:
Or property that is mortgaged overseas ......
I didn't think that actually owning an overseas property was something that needed to be declared to the revenue e.g. If I buy a holiday home abroad and don't rent it out so not making any income from it, I would only need to inform the revenue when I sell it and pay CGT
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Correct me if I'm wrong but I think you're obliged to inform the revenue when you acquire an asset.
 
If you acquired the land/property through a means other than paying full market price for it, i.e. inheritance or gift, you would owe CAT on it immediately.
 
3littlefish said:
If you acquired the land/property through a means other than paying full market price for it, i.e. inheritance or gift, you would owe CAT on it immediately.
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There could be widespread abuse of the fact you need a separate will in the overseas location. I don't know how the Revenue chase people for CAT on inheritance...do they check the probate office?
If people are inheriting overseas property from a will drawn up overseas and there's no mention of it in the Irish will this is probably open to massive abuse.
 
Abbeykiller said:
Or property that is mortgaged overseas ......
I didn't think that actually owning an overseas property was something that needed to be declared to the revenue e.g. If I buy a holiday home abroad and don't rent it out so not making any income from it, I would only need to inform the revenue when I sell it and pay CGT
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The above is true in all countries with the exception of Spain as non-resident property owners in Spain are obliged to file a Rental/ Deemed rental income return. Regardless if your property is being rented out or Not you are still required to file this return

Example: your apartment/ villa is not being rented out and you and your family only use it for less than 6 weeks a year. The local town hall will put a value on your property (generally less than the market value) and will deem what rental the property would yeild on a value of that amount. The taxable deemed rental income is estimated @ 2% and the property is liable to pay 25% of this amount.

This prectice seems crazy to most but it is an unavoibable truth and one that should be taken very seriously. We were nearly hit with a very hefty bill as the taxes are applicable to the property and not the individual so when you go to sell your property it is inevitible that the tax bill will have to be cleared and this could be quite substantial when all interest and penalties have been included L
 
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That doesn't sound very fair. It sounds as if the local officials in Spain deem a vacant property in their locale as an opportunity cost in terms of it's financial contribution to the local economy. If there is nobody renting it out of living in it, there is nobody spending money in the local economy. Your property is taking up space that could house people that contribute.
 
3littlefish said:
That doesn't sound very fair. It sounds as if the local officials in Spain deem a vacant property in their locale as an opportunity cost in terms of it's financial contribution to the local economy. If there is nobody renting it out of living in it, there is nobody spending money in the local economy. Your property is taking up space that could house people that contribute.
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I think it was in response to all the dodgy dealings in property that resulted in lost billions in undeclared taxes but whatever the reason it is very unfair to tax anyone on income that never was actually received
 
Question: Relative of mine is purchasing abroad, and would like me to be a co-owner on the property - as I will inherit it.

After reading the topic above, Im wondering if there are implications - I have not signed as of yet!

I will also not be putting any money forward.
 
I'm no tax expert, but on the surface, if I was being given a share of an asset for no consideration or for a very very very discounted amount of money I would presume that I would liable to CAT or gift tax in this instance here.
 
Inheritance tax also has to be considered in the foreign juristicition as rates can vary greatly from country to country. The CGT as noted by 3littlefish will apply in Ireland but their will be a liability in the overseas country. You should therefore seek independent legal and tax advice before you proceed as not knowing the fullimplications before you buy can greatly effect the final tax liability in both Ireland and abroad.
 
Creditlimit said:
Inheritance tax also has to be considered in the foreign juristicition as rates can vary greatly from country to country. The CGT as noted by 3littlefish will apply in Ireland but their will be a liability in the overseas country. You should therefore seek independent legal and tax advice before you proceed as not knowing the fullimplications before you buy can greatly effect the final tax liability in both Ireland and abroad.
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Is that not the idea of a DTA, to avoid being taxed twice for the same thing in 2 different jurisductions?
 
Depends on the DTA. If the tax rates in Ireland and the foreign country differed then you may just get a credit and still be liable for the shortfall.
 
Just because there is a DTA in place it does not automatically mean that all taxes are applicable. CGT is not covered in the DTA between France and Irl.
Inheritance tax rates will vary from country to country and in some cases could be as high as 60% 70% if the pre documentation constructed correctly
 
(d) - it depends on the details of the specific agreement. See Creditlimit's post above also.
 
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