Does your principal private residence have to be in Ireland?

Hi guys,

Quick question I am just wondering does your principal private residence have to be in Ireland, its curiosity as much as anything what with the high price of buying here and sure you could always get somewhere cheap to rent here. For how many days would you have to be in the country of purchase (of your home) if this was possible and you were to do it?

Thnaks in advance,

Q

Re: Where can your principal private residence be?

under irish tax law the 1st house you purchase is your PPR, if you buy any house after that it would be considered an investment property, a distinction is made between the 2 for 2 tax purposes, firstly you pay capital gains tax on profits if you sell an investment property, and secondly you are entitled to claim Mortgage Interest Relief on your PPR.
property you own outside of ireland does not affect your PPR status, but you would be liable for tax on rental income of a foreign property.

Re: Where can your principal private residence be?

For how many days would you have to be in the country of purchase (of your home) if this was possible and you were to do it?

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You would have to live there for most of the year - more than half the days in the year. Where you are at exactly midnight is used to calculate this i.e. for taxation purposes you are deemed to be a full day in the country you were in at midnight, regardless of how many hours you may have spent elsewhere.

Re: Where can your principal private residence be?

bamboozle said:

under irish tax law the 1st house you purchase is your PPR, if you buy any house after that it would be considered an investment property, a distinction is made between the 2 for 2 tax purposes, firstly you pay capital gains tax on profits if you sell an investment property, and secondly you are entitled to claim Mortgage Interest Relief on your PPR.

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This is incorrect. The house you live in for most of the time is your PPR, whether it's the first one you buy or not - or indeed, whether you own it or not. Nor do you get to have PPR treatment on a property simply because it's the first one you buy, if you have bought it as an investment.

Otherwise, what csirl says.

question re "principal private residence" moved from Location, Location, Location to Taxation

Hi,

In relation to your query, your PPR has to be a house that you occupy as your main residence. You would have to be able to prove that this is the case. So in the case of buying a property abroad you would have to live in it (at least part of the time), be able to show your links to the area etc.

The legislation covering the PPR relief does not specify that the residence has to be in Ireland.

In the sitution where you are determining which house is your PPR (e.g. if you have two houses in which you live) you are entitled to nominate which residence is your PPR. You must do this within 2 years of owning the second house. If you don't, it is at the discretion of the local inspector to determine which residence is your PPR.

Hope this is of help!

Bailey