CGT on sale of apartment in Portugal

G

Gorteen

Registered User
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We had a holiday home (no rental income) for the past 4 years and sold it near end of November 2023. The closing date, if I'm reading this correctly, to pay the CGT is 15th December 2023. The CGT due in Portugal is 25% of the gain, in Ireland it is 33% of the gain.
If I understand it correctly, because Ireland and Portugal have a taxation agreement whereby I don't have to pay full CGT in both countries, I must pay 25% in Portugal the difference of 8% here in Ireland.

However, the CGT in Portugal is not due until next May and the Irish CGT is due at the end of this week!!!
Do I have to pay the 33% this week in Ireland and then reclaim this next May when I pay CGT in Portugal? I can't find any information on this issue!
 
No. You calculate your Irish liability taking into account the credit for the Portuguese tax, and pay on that basis.

Consider getting professional advice if this presents difficulty for you.

Best of luck with it.
 
T McGibney said:
No. You calculate your Irish liability taking into account the credit for the Portuguese tax, and pay on that basis.

Consider getting professional advice if this presents difficulty for you.

Best of luck with it.
Click to expand...
So I only send Revenue the 8%?
 
Last question, because it’s all a bit “last minute.com”. I imagine I’m better to overestimate my liability???
 
Gorteen said:
Last question, because it’s all a bit “last minute.com”. I imagine I’m better to overestimate my liability???
Click to expand...
It's impossible to say without knowing the sums involved. If you're talking about overpaying by a small sum, don't let me stop you, but if there are significant sums involved that you can't afford to lose permanently, you'll need to be appropriately careful.

The CGT payment deadlines are ridiculously tight for sales that close late in the calendar year.
 
Tommy’s right.

The Portuguese rules are similar enough, so just calculate the gain taking account of legal and estate agents fees plus the stamp duty tax.

Don’t over or underestimate the liability, just calculate it correctly. It’s a 5 minute job once you have the info.
 
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