Tax implications of buying in Dubai and Poland

D

draoi

Guest
Hi
I am currently considering buying in either Dubai and/or Poland. Does anyone know if there would be double taxation on the Poland thing? And would we be liable for tax in Ireland on profits from dubai rental incme or if we sold the Dubai property?
Thanks so much for any advice. It's so hard to find out specifics.
 
there is an agremnet between poland and ireland that you cant be taxed twice,
however make sure you know that if you sell a polish property within five years you are liable to pay 10% (think it is 10 anyway) on the sale price.
 
Does anyone know if there would be double taxation on the Poland thing
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With a double tax agreement, you pay tax in the country where the property is situated according to the rules of that country. You then advise revenue in Ireland of the foreign property and pay tax on the profit according to the rules in Ireland. You can then offset the tax paid to the foreign country against the liability to Irish revenue.

Without a double tax agreement you pay tax in both countries.

And would we be liable for tax in Ireland on profits from dubai rental incme or if we sold the Dubai property
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Tax is payable on profit from rental Income. But you can offset the following see [broken link removed] - What expenses can be claimed?

Tax is also payable on the gain made on sale of any property CGT @ 20% less acquisation cost and selling costs.
 
Hi,

Am checking out the tax side of things for Poland and it seems that if you keep your property for 5 years or more, there is no Capital Gains Tax due in Poland. As Ireland has a double taxation agreement with Ireland, it would appear that there is no CGT due from the Irish side either-can someone who has gone through the buying process in Poland please confirm?

Thanks
Cormac
 
If you sell a foreign property you pay the CGT in that country and in Ireland as though the property was an Irish property. You then offset the tax paid in Poland against the tax due in Ireland and pay the balance

Example
Property bought for 50K
Six years later sold for 80K
Gain 30K (No tax payable in poland- I'll take your word for this)

Tax payable in ireland 30K @ 20% = 6K. (I have ignored purchase and selling cost for the purpose of this example)
 
draoi said:
Hi
I am currently considering buying in either Dubai and/or Poland. Does anyone know if there would be double taxation on the Poland thing? And would we be liable for tax in Ireland on profits from dubai rental incme or if we sold the Dubai property?
Thanks so much for any advice. It's so hard to find out specifics.
Click to expand...


Have not looked into Poland but in terms of DUbai there are no implications whatso ever. I have no daoubt that the govenerment over there at some stage within the next 2 years may impose a tax. I feel this as the market is becoming over saturated. This has always been a point made by critics but it is tru Dubai govermnetn cant go on any longer anouncing evry other month a new Worlds Biggest Project. These big porjects you here of regualryl in dubai, Worlds Tallest BUilding, Worlds first underwater hotel, worlds biggest shopping mall, worlds biggest theme park, worlds biggest man made island x 3 etc etc.


Its full to bursting!!!
 
Cormac T said:
Hi,

Am checking out the tax side of things for Poland and it seems that if you keep your property for 5 years or more, there is no Capital Gains Tax due in Poland. As Ireland has a double taxation agreement with Ireland, it would appear that there is no CGT due from the Irish side either-can someone who has gone through the buying process in Poland please confirm?

Thanks
Cormac
Click to expand...

This is the same as Slovakia, for what is worth.
 
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