Non-domiciled with foreign rental income

C

Cristiancc

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Hi. Me and my wife have just moved here.

I understand we become residents but remain non-domiciled.

We have a property which will be rented and we will pay tax in our country (EU) for the income it generates.

Do we have to pay tax in Ireland for that money?
 
Yes, you have to declare it on your IncomeTax return under Foreign Rental Income. However, you will get credit for any tax paid in the EU country where the property is up to the limit defined in the double-taxation treaty between Ireland and the EU country. These treaties, in general, limit the tax charged in the country where the property is to 15%. If you are charged more than that, then it is reclaimable from the EU country tax authority
 
jpd said:
Yes, you have to declare it on your IncomeTax return under Foreign Rental Income. However, you will get credit for any tax paid in the EU country where the property is up to the limit defined in the double-taxation treaty between Ireland and the EU country. These treaties, in general, limit the tax charged in the country where the property is to 15%. If you are charged more than that, then it is reclaimable from the EU country tax authority
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I understand he only has to pay tax on the money if the money is brought into Ireland, as they are non-domiciled. Is this right?
 
jpd said:
Yes, you have to declare it on your IncomeTax return under Foreign Rental Income. However, you will get credit for any tax paid in the EU country where the property is up to the limit defined in the double-taxation treaty between Ireland and the EU country. These treaties, in general, limit the tax charged in the country where the property is to 15%. If you are charged more than that, then it is reclaimable from the EU country tax authority
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Yes, this is wrong.

The rental income is only taxable in Ireland if it is “remitted” (i.e. brought) into Ireland.

The treaty-related stuff is also wrong.

Sorry jpd!
 
Gordon Gekko said:
Yes, this is wrong.

The rental income is only taxable in Ireland if it is “remitted” (i.e. brought) into Ireland.

The treaty-related stuff is also wrong.

Sorry jpd!
Click to expand...

Google for "remittance basis of taxation", but it is likely wise to get tax advise now.

I am not tax specialist, but if you don't bring it in now, it may end up being more expensive if you want to bring it back in later....e.g. it may then be taxed again fully as income, without getting the "benefit" of the tax you paid previously in the other country.
 
Thanks for the answers so far, this topic is also of interest to me.

@Gordon Gekko So if a foreign income is eligible for the remittance basis of taxation, does that mean that I only have to declare to Revenue the amount that I remitted? Or do I have to declare all worldwide income and then only tax the remitted income?
And I guess the remitted foreign income should be declared on Form 12 (if employed in Ireland) in the sections 27 to 41 ("Foreign Income")?

Would appreciate any help very much!
 
Thank you! What about my second question: "And I guess the remitted foreign income should be declared on Form 12 (if employed in Ireland) in the sections 27 to 41 ("Foreign Income")?"

And is there a difference between income from rental properties and income from a business abroad?
 
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