Capital Gains Tax for Sale of Property in Pakistan

A

aliexclusive

New Member
Messages
1
Dear Group Members,

I am writing to seek guidance regarding the Capital Gains Tax applicable to the sale of a property in Pakistan.

I purchased a property in Pakistan in 2019, valued at PKR 3,000,000 (€17,750 at the 2019 conversion rate of €1 = PKR 170). I moved to Ireland in January 2022. Now, I am planning to sell this property for Pakistani Rupee (PKR) 6,000,000 (€20,134 at the current conversion rate of €1 = PKR 298). I understand that I have to pay CGT on the profit made from this sale.

I would like to know how much CGT I have to pay in this case if I sell the property. Additionally, does the revaluation of the PKR play a role in determining the Foreign Capital Gains Tax? If so, how is this revaluation calculated and applied to the capital gains?

I am also required to pay some taxes in Pakistan. Are there any tax treaties between Ireland and Pakistan that might affect my tax liability? What are the reporting requirements and deadlines for declaring this foreign capital gain in the Irish tax return?

I appreciate your assistance in providing detailed information on these points to ensure compliance with tax regulations. If there are any forms or additional documentation required, please let me know so I can prepare and submit them.

Thank you for your assistance.

Best regards,
 
I'm assuming you're a Pakistani citizen and never lived in Ireland before 2022. In that case you would most likely be "non-domiciled" in Ireland. If you have previously filled in a "Form 11" tax return in Ireland, you are asked to state your country of domicile. I'm assuming you haven't done this. Or if you have, I'm assuming that you didn't select Ireland as country of domicile.

Anyway, check out this revenue link on foreign property.

When do you pay Irish CGT?​


If you dispose of a foreign property, and are resident or ordinarily resident in Ireland, you must pay Irish CGT.


You might be resident but not domiciled in Ireland. If you are, you will only have to pay Irish CGT on the money that you bring into Ireland.
Click to expand...

So, if you leave the money in a Pakistani bank account, or otherwise invest it but don't transfer it to Ireland, you shoudn't have to pay any Irish CGT. But if you're planning on using the profit to, say, buy a property here in Ireland, then you will have to pay Irish CGT (depending on what the double-taxation treaty states, which I haven't read).
That's my reading. Hopefully some other posters can confirm or refute this.
 
You must log in or register to reply here.
Back
Top