Foreign Investment - Bringing money home

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Macstuff

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2 years ago I remortgaged my Dublin house to invest in a business in Spain involving the redevelopment of an old house into 3 apts. Happily all went to plan and I have ended up with a mortgage free apt. in the Spanish building.:) I have paid all taxes in Spain.
I now want to put a mortgage on this apt. (issued by a Spanish bank) and bring the proceeds home to pay off my remaining Dublin mortage (or as much as possible). Can anyone advise the tax implications of doing this? Remember I havent sold the Spanish property - Im just "swapping" the mortgages.
Even suggestions on a good tax advisor would be welcome. Thanks alot.
 
A few facts still remain unclear in your posting.................

Can we assume you are resident,ordinarily resident and domiciled in Ireland and have been for the past two years.

Its not clear if you have sold two of the apartments and retained one for yourself. If this is the case you will have a CGT liability in Irteland on these sales by virtue of partial disposal of the investment property.

PM me if you want to discuss this.
 
Hi there

Thanks for your interest. To answer the questions
a) yes I have been resident in Ireland for the past two + years and
b) I didnt sell the other two apts. I had two business partners in this venture and they took ownership of one apt. each when the venture was concluded. We are each registered as the legal owners of our respective apartments.
 
Then its very straight forward.

You are taking a loan from a Spanish bank and remitting those funds to Ireland. As collateral the bank is taking a mortgage on your Spanish property. There is no tax liability on remitting the Spanish loan proceeds to Ireland.
 
Hi Macstuff,

I'm not sure what your reasoning is behind swapping the mortgages. Will you not be missing out on mortgage interest relief in ireland as you will have a much lower loan here?
Also, is the apartment in Spain to be used as a rental property? I think interest payments on taking out a new mortgage on it won't qualify as deductible expenses from your rental income.
 
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