Income tax Returns

  • Thread starter carrowreagh
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carrowreagh

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As mentioned in a previous post I am at looking at buying property in Portugal. (Nay advice still gratefulyy accepted!!). Would Rental Income on the proerty need to be declared in both Ireland and Portugal??.
 
You have to pay tax in Ireland on your worldwide income. I presume they pay tax on rental Income in Portugal.
 
I am currently looking at buying in Portugal and have research the tax side of things a little. Unfortunately tax is payable in Portugal on rental income received at 25%. Certain costs can be deducted from rental income for tax purposes.
Portuguese rents are taxed also in Ireland but you can offset the Portuguese tax paid against Irish tax due.
There are a number of online tax advisors which may be of use to you - one website I came across is [broken link removed] - I havent used them so I cant say how good or bad they are but they have listed the various tax details for Portugal as well as other countries.
 
I was reading a local English language newspaper over there last year and they had a feature on the taxation of foreign owned investment properties/holiday homes and it was not simple! Get independent professional advice from somebody with experience of the tax codes in both jurisdictions.
 
The double taxation agreement between Ireland and Portugal should provide for some relief i.e. may give a credit for foreign tax payable against the Irish liability. Under the DTA the taxing rights belong to the country where the property is located.

Unless you are 100% sure you know what you are doing I would get independent advice
 
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