How to set up a company for buying property abroad?

S

spider7

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Hi!
I am hoping somebody would be able to give some advice on how to set up my own company. The principle reason being i would like to buy property abroad without affecting my first time buyer status which would be affected if I bought and sold property as an individual .

I am sure it would be quite easy to go to an accountant and pay the €250-450 cost plus €200 for filing annual a/c's, but being thrifty would like to be able to do this myself.

any suggestions/advice would be greatly appreciated.
Many Thanks.
Spider
 
spider

It's not a good idea buying a property through a company. You will get hit for double tax on any capital gain and you will have big adminstrative problems. It will also limit your borrowing ability when you do go to buy a house in Ireland.

Brendan
 
You alarm me considerably, Brendan, with regards to the double taxation situation! I own property in Romania through my romanian company and shouldn't have thought that I would be liable for CGT in Ireland if ever I were to sell it (which is definitely not on the cards for the medium to long term).

Perhaps the best advice to spider would be to establish a company, if that becomes necessary, in the country in which he intends to buy. But I, as director of an irish company too, totally agree with you regards the admin nightmare of living in one country and administering a legal entity in another country!
 
SecurityDoor said:
I own property in Romania through my romanian company and shouldn't have thought that I would be liable for CGT in Ireland if ever I were to sell it (which is definitely not on the cards for the medium to long term).
Click to expand...

I doubt very much, you can avoid paying IRISH CGT on your Romanian property just because you bought it through a Romanian company.

You should seek advice from a tax professional familiar with Irish and Romanian Tax laws.

if someone advises that it is possible, please post back! But to be honest I think you are mistaken.
 
I should clarify that the Romanian company in question is mine solely! I.e. I am the MD and company secretary. It is not a company that I bought through. It is one I set up expressly to buy the property I now own (and that was ONLY because there was land involved in the deal).

I am married to a Romanian girl and live out here full time. In short order I will have residency.

Please explain to me why I will have to pay CGT in Ireland if I sell?
 
SecurityDoor said:
I should clarify that the Romanian company in question is mine solely! I.e. I am the MD and company secretary. It is not a company that I bought through. It is one I set up expressly to buy the property I now own (and that was ONLY because there was land involved in the deal).

I am married to a Romanian girl and live out here full time. In short order I will have residency.

Please explain to me why I will have to pay CGT in Ireland if I sell?
Click to expand...

If you are not resident(Revenue have rules for this) in Ireland then you will not have to pay tax in Ireland.

Most people posting and looking for advice on this website are probably resident in Ireland and would therefore have to pay income tax and CGTs on worldwhile Income and capital gains respectively.

You should have stated that you are non-resident in Ireland.
 
My 'Location' handle gives my errrrmmm.......location...

No worries DK... your advice is sound for those who are resident in Ireland
 
spider7 said:
Hi!
I am hoping somebody would be able to give some advice on how to set up my own company. The principle reason being i would like to buy property abroad without affecting my first time buyer status which would be affected if I bought and sold property as an individual .

I am sure it would be quite easy to go to an accountant and pay the €250-450 cost plus €200 for filing annual a/c's, but being thrifty would like to be able to do this myself.

any suggestions/advice would be greatly appreciated.
Many Thanks.
Spider
Click to expand...


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