Capital Gains Tax

If I own half a property in Ireland but live in Spain and have done for 5 years therby making me a non-resident, if I sell the property today am I liable to Capital Gains Tax here? Or am I exempt because of my non-residence status?

Jimbob2 said:

If I own half a property in Ireland but live in Spain and have done for 5 years therby making me a non-resident, if I sell the property today am I liable to Capital Gains Tax here? Or am I exempt because of my non-residence status?

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Property in the State is always chargeable to CGT regardless of residence.

You may also be liable to CGT or similar in Spain. If there is a Double Tax Agreement with Ireland and it covers this type of tax you may be able to offset the tax paid in Ireland against the tax due in Spain. Opposite of the situation of an Irish residence selling property in Spain

Thanks for the replies.

I had a root around the Revenue website and could see no reference to CGT and residence. Is there anywhere that confirms CGT is payable regardless of residency (not that I doubt you of course) I'd just like to see it written down somewhere.

I also heard that if I inherit a house from my mother and keep it but don't live in it that I am not liable to CGT on it if I keep it for more that 5 years? Is that true?

Also, if I never lived in the house and I sell it 2 years after inheriting it, is it true that I can discount the last 12 months of ownership therefore when calculating the gain made I only count the first year I owned it. If I keep it for 5 year I only count the gain for the first four years that I owned it, is that true?

If the joint owner buys a portion of the house from me now and then we sell it a few years later and I get the rest of what's owed to me, how do I work out the CGT on the portion the co-owner buys from me now?

Thanks.

I had a root around the Revenue website and could see no reference to CGT and residence. Is there anywhere that confirms CGT is payable regardless of residency (not that I doubt you of course) I'd just like to see it written down somewhere

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Does this cover it specifically pg 4 Ch 1

Double post sorry

I also heard that if I inherit a house from my mother and keep it but don't live in it that I am not liable to CGT on it if I keep it for more that 5 years? Is that true?

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Not true. I think the peson who said that was confusing CGT with the CAT exemption on inheritence of a private dwelling, which is a bit more complicated than stated.

Also, if I never lived in the house and I sell it 2 years after inheriting it, is it true that I can discount the last 12 months of ownership therefore when calculating the gain made I only count the first year I owned it. If I keep it for 5 year I only count the gain for the first four years that I owned it, is that true?

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Yes, you will get partial exemption as stated - it is not the gain in the year that is exempt, it is 1/2 or 1/5 of the total gain - this is not necessarily the same - could be better or worse.

If the joint owner buys a portion of the house from me now and then we sell it a few years later and I get the rest of what's owed to me, how do I work out the CGT on the portion the co-owner buys from me now?

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It will be calculated as the percentage of the value that you dispose of ie Value of part disposed /(value of part disposed + value of rest). It doesn't matter how much you get, it will be based on the actual valuation.