Revenue will want to know how you financed your foreign property purchase and if by mortgage, how you are paying this back. You may have opened a foreign bank a'c into which you pay electricity bills, water rates, etc. Is there a management fee and how is that paid? I'd imagine these are all details the revenue might need from you. Most European countries will inform each other of nationals opening a'c's in their juristiction as per money laundering rules. There's nothing to worry about if you comply with everything and all can be accounted for, but if there's thousands used in buying the place or whatever, you'll have to come up with the paperwork for everything.
Funds Used to Purchase the Property
Are there any tax implications when I buy a foreign property?
You are not required to notify Revenue if you buy a foreign property. However, in most cases you will have to open a bank account in the country where you purchase the property, and you must notify Revenue of this on a tax return in the year the account is opened (see miscellaneous issues). You must ensure that the money used to purchase the property has been or will be fully declared for tax purposes and that all due taxes have been paid whatever the source of the money. If you have borrowed money to buy the property, the money used to repay this loan must also be declared.
You must comply with your normal tax obligations. Using monies to buy a foreign property does not remove these obligations. Revenue will be interested in confirming that funds used have been declared for tax purposes or are not liable to tax.
Did you inform Revenue when you opened the account in the foreign country? I think you are obliged to (although if you have already paid tax in ireland on the money in the foreign account then you don't have to - again I think!)
. Don't know the situation about buying a house abroad..
No i didnt this was back in 2002 when i begged irish banks for a loan and they al told me to go away
the property was 60,000 its not a 100 properties , i dont have property here cant afford it, have all my bills paid for here and the mortgage finished in 2012 was only a 10 year mortgage
as i said was 2002 so if dont do anything will i get my hands slapped ?
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