sold a property in dubai, want to bring the money home

D

duchalla

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Hi, I bought a property in Dubai just over 3 years ago, I sold it just before christmas. The money is in dollars in a family members account in dubai. Due to the weak dollar I haven't made a profit on the sale. I want to bring the money back home and put it in to a dollar account here. Hopefully in a year or 2 the dollar will have got stronger and i'll then change it into euro. My question is, are there any tax implications, firstly on bringing the money back into the country and secondly, on changing the dollars into euro? All advice greatly appreciated!!!
 
If I were you.....I would invest your money in a dollar based investment product, which could be a variety of things - for example you could purchase a property in the US and probably get an excellent deal due to current conditions - and get a decent yield on your money. As people cant afford to own their properties there, they have to rent, so the rental market has increased. Better then getting 3% or whatever a dollar account is yielding at the moment
Obviously you would need to research and buy in the right place so your investment isnt going to loose value, and there is a risk involved

No more then the risk that hopefully the dollar will recover and you'll make you money back.
you'll also have to pay 20% (someone correct me if im wrong) on what you made in dubai, unfortunately currency exchange rates dont effect the tax
 
No more then the risk that hopefully the dollar will recover and you'll make you money back.
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So adding a property investment risk on top of an exchange risk does not increase your potential exposure? Are you serious? I fully accept that investing in property may have an upside but given that the OP is looking at a conversion to euro in 1-2 years, touting overseas property seems an odd solution.
 
Well leaving your money in an low interest baring account in the hope that the exchange rate improves is a waste of time. Inflation alone will negate any interest gained.

A property is one option, depending on how smart the person is who buys it and what they buy will determine the level of risk.
If the poster didnt know the ins and outs of finding the right property, he might want to look at some other types of financial product available in US dollars, but i beleive that the yields available in the US at the moment make it worth looking at real estate so at least you can get a return on your money in the meantime
 

If you are Irish-resident, the tax implications arising from the disposal of your Dubai property will not be affected by whether or not you repatriate the money.
 
so, what you are saying is i'll will have to pay CGT @ 20% on the property even though I lost money on the investment?! That seems strange! how do you calcuate CGT on the property if I didn't make any gain? Im not being smart but I cant understand the logic here....
 

where did I say that? Read my post again.
 
sorry ubiquitous, that posting was ment for GDE, im new to the site, still tryn to navigate my way around it! In your opinion will i have to pay CGT?
 
 

Firstly on the CGT. I might have made an assumption too many - but for example, if you purchased with US$ for 100K and have sold now for $110K, that dollar gain is less then what the dollar has lost against the euro. So while you have made a profit in dollars you have made a loss in euro.

Docker, your points are reasonable, but I dont think its a non runner. Your assuming that he will find it difficult to sell in two years. It is speculation but I believe the housing market in the US will be recovering well at that point, so there should be some capital gain made to cover buying a selling cost.
Obviously there is the risk of the property going further down in value in the months after purchase, that is why experience in purchasing and getting knowledge of the submarkets in the US would be key.

As I mentioned in the first post, its one option. The risks need to be weighed up in compared to other $ products
 
If you make 10K profit you have to pay tax accordingly. There is no need to bring exchange rate losses or gains into it. You take your sale price plus costs and subtract your purchase price plus costs and that is your profit or loss. Just use one currency for all the calculations.
 

Wrong, wrong wrong. GDE's interpretation is correct.
Bronte said:
but for example, if you purchased with US$ for 100K and have sold now for $110K, that dollar gain is less then what the dollar has lost against the euro. So while you have made a profit in dollars you have made a loss in euro.
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Sorry Ubiquitous, forgive my ignorance but could you do an example so I can understand.... Do you mean this - say that if you purchases for 80K Euro (at the time say equal to $100 ) and now you sell for $110 (now equal to 60KEuro) is that what you mean? This shows a gain of $10 but a loss of 20K Euro. (I'm only using round figures and exchange rates)

Also the second quote is not mine.
 

Put simply, the tax gain/loss is calculated in domestic currency only, and its calculation requires appropriate currency conversion at the acquisition and disposal dates.

Apologies if I sound harsh but your advice (which you stated quite emphatically) was the exact opposite of the correct position.

Also the second quote is not mine.
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Yes, I said "GDE's interpretation is correct" and reposted his/her comments to emphasise this.
 
I dont know about Ireland,but in the uk the revenue has its own dates and rates for conversion,you cant use yours even if there factual.As for the Dubai investment,would of been best to leave funds in aed and await the revaluation of UAE currency in 2010 or before,upside could be 25%.if not you are still pegged to maybe a rising dollar
 
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