Revenue investigating overseas property

T

teasup

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After hearing the news this morning about Revenue investigating overseas property I am a little worried. I have an overseas property. I bought it from the sale of a property in Ireland and all the finances were above board. I have never rented out the place. I spend 6 to 8 months a year there. My wife died recently and I am thinking of selling.

Are there complications bringing the money from the sale back into this county?

Do I have any liability in regards to Revenue? I haven’t declared the property. I had to be assessed for the pension a few years back and did not put this down on the form.

Apologies if these questions seem a bit foolish but my wife used to deal with all these matters.

Thank you.
 
Firstly sorry for your loss. My heart goes out to you. Where is the property overseas? what country?
 
Sorry for your loss. I heard the new Revenue Chairman on the radio yesterday, saying that in relation to overseas properties, they were primarily looking for undeclared rental income or properties that had been bought with hot money. On this basis, I don't think you've anything to fear from Revenue.

However, you really should regularise your situation with Social Welfare.
 
Complainer said:
Sorry for your loss. I heard the new Revenue Chairman on the radio yesterday, saying that in relation to overseas properties, they were primarily looking for undeclared rental income or properties that had been bought with hot money. On this basis, I don't think you've anything to fear from Revenue.

However, you really should regularise your situation with Social Welfare.
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Would I not be taxed in any way if I did tell Revenue?
 
If you are on a non contributory pension for which you were means tested then only your principal private residence is exempt from the means test. Assuming you have a principal private residence in Ireland then the value of the second property in spain will be assessed as means - whether or not you rent it out. Be carefull.

If you are on the contributory pension then you would have nothing to worry about as you would be entitled to your pension no matter what other income or assets you had. You would of course have to pay tax on any income but from what you say you are not deriving an income from the property.
 
I'm not sure, but if you spend 6-8 months per year there you might have the option of claiming 'non-residential' status for tax purposes.
 
laila said:
If you are on a non contributory pension for which you were means tested then only your principal private residence is exempt from the means test. Assuming you have a principal private residence in Ireland then the value of the second property in spain will be assessed as means - whether or not you rent it out. Be carefull.
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It's not a matter of being careful. It's a matter of being honest. The second property would be treated as "capital" based on its value. This from the www.welfare.ie site:

"A single person who has no other means can have capital of up to €40,999 and qualify for the maximum rate of pension of €212.00 per week. Alternatively, the same person can have capital as high as €91,999 and qualify for a reduced pension of €7.00 per week.
A married or cohabiting couple who both satisfy the other conditions of the scheme and whose means are derived solely from capital can have joint capital of up to €81,999 and each can qualify for the maximum rate of pension of €212.00 per week. Alternatively, the same couple can have joint capital of up to €183,999 and each can qualify for a reduced pension of €7.00 per week."

If the property is not declared for State Non-Contributory Pension means-test, this fact will emerge in probate after death and the overpayment of pension will be recouped from the estate.
 
Sincere condolences. Excellent replies so far. You do not state whether your pension is contributory or non-contributory. The advice to be given will vary hugely dependant upon your answer. As regards your sale if you have made a capital gain then you could be subject to capital gains tax of 20% of your profit (less some allowance for personal allowances). If the property was jointly owned then you would have inherited 1/2 the property at the market value at the date of your wife's death reducing the cgt payable.
 
Thanks to everyone for the replies.

Sorry I should have been more specific, I applied for the non-contributory pension but did not get it. However when I spoke to Social Welfare recently I was told I could be reassessed since my circumstances have changed. My wife was on a contributory pension. Im not originally Irish hence I never worked in Ireland.
 
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