Do I need to declare sale of property abroad?

1

1wrreno

Guest
Hi,
I've just sold a property that I bought in Portugal a few years ago at a loss: I'm pretty sure I don't owe any tax on it as I made a loss (please correct me if I'm wrong), so my question is do I still need to declare the money from the sale to the Irish tax authorities? [Will be in my Portuguese bank account soon and I want to transfer it to my Irish account].
Thanks.
 
definitely declare it if you made a loss; as described above you can write off that loss against any gains over the coming years
you may need to be careful though if you didn't declare you bought it in the first place, or were renting it etc; could result in some awkward questions
 
Recently sold a foreign apartment anyone know if management agencys fees and payments to the maintenance association of the building be offset against any capital gain on the sale ?
 
fear peile said:
Recently sold a foreign apartment anyone know if management agencys fees and payments to the maintenance association of the building be offset against any capital gain on the sale ?
Click to expand...

No, those aren't capital items - if the property was a rental property you would claim them as deductions against the rental income.
 
exchang rate on sale

Thank you for the reply Mandelbrot. Much apreciated.

I sent the money out from Euro in Ireland to a foreign currency, can the losses incured on the exchange rate from purchase exchange rates and THE RATE ON THE DAY OF SALE be claimed agains any CGT to the Irish revenue declaration given that the majority of sale funds are still in the foreign currency.

Regards
 
fear peile said:
Thank you for the reply Mandelbrot. Much apreciated.

I sent the money out from Euro in Ireland to a foreign currency, can the losses incured on the exchange rate from purchase exchange rates and THE RATE ON THE DAY OF SALE be claimed agains any CGT to the Irish revenue declaration given that the majority of sale funds are still in the foreign currency.

Regards
Click to expand...

From Revenue's guide to CGT: http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf

(Chapter 3, page 11)
"5. Assets acquired and/or disposed of in Foreign Currencies
Where acquisitions and disposals are made in foreign currencies the cost of acquisition and the disposal proceeds should be converted to Euro at the dates of acquisition and disposal respectively. Refer to Example 10, Chapter 11, for a practical example of how to calculate a chargeable gain and tax payable where assets are acquired and disposed of in a foreign currency."​




So, the simple answer to your question is yes, you do get relief for the change in exchange rate - because both the cost and the proceeds are converted into € at the prevailing rates.
 
I am about to sell a foreign property and will be incurring a hefty loss.

I did'nt declare it in the first case when I bought it several years ago and took out an equity release on my principal private residence and did not not claim mortgage interest relief.

I received a total rent of less than 3k in the several years I have it which I did'nt declare.

My loss will be substantial.

My query is if I declare the sale now and I make a profit from the sale of a horse or horses in the next few years can I offset the losses against any gains from the stock I sell.

Thanks
 
As you refer to the horses being "stock" it sounds as though any profit from selling horses will be liable to Income Tax.
The loss on sale of your property could give relief against a taxable Capital Gain, but not Income Tax.
 
i sold my flat in another country,and i want to buy in Ireland house.
So my question is.Do I need to declare sale of property abroad?

Thanks
 
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