Paying tax in Ireland on Hungarian and UK Rental Properties

E

elainec

Guest
Hi Guys

Whats the best way to pay tax on rental income for investment properties in UK and Hungary?

Do I just declare them and pay tax as normal to Irish Revenue or do I have to file returns in the countries of origin?

Thanks in advance,
 
You'd need to pay your tax locally first. e.g. if you have Hungarian rental income, you should pay tax on it first in Hungary.

You can then reduce/eliminate your Irish tax requirement, as there is a double-taxation agreement between both the UK/Ireland and Hungary/Ireland.
 
nseventeen, the normal way of paying tax on overseas rental income is to pay in that overseas country first.

Using Hungary as an example, if an Irish person earns money from a Budapest-based property, then he is primarily liable for tax in HU before his Irish liability. As a basic example, let's say he pays 25% tax on his Hungarian income. If he pays income tax at the higher rate of 41% in Ireland, then because of the double taxation agreement between IE and HU, he can reduce his Irish tax liability by the 25% already paid in HU and pay only 16% tax on the income in Ireland. (This is a basic example and there are other considerations/deductions, which can be made).

http://www.revenue.ie/en/personal/b...reign-income-tax-paidliability-irish-tax.html
 
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