Ireland Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.9 Ireland International Real Estate

International real estate and its tax treatment

In terms of accommodation for individuals internationally, the variety of property is very wide, although if you're planning to purchase property overseas, professional advice (in both countries) is essential, and the tax implications of such a transaction will vary according to whether there is a double taxation agreement in place, and the terms of said agreement.

The tax treatment of the transaction will also vary according to whether the property is purchased by the individual privately, or via a corporate structure (which can present its own problems, as some countries – for example France – object to this, and attempt to tax the practice out of existence). The French authorities argue that property investors have been illegally avoiding registration and wealth taxes by purchasing property via offshore companies, which often disguised the beneficial   - and therefore taxable! – owner.

Where taxes do apply to international property purchases, they are likely to comprise:

- Purchase, acquisition or transfer taxes on the property or land, (for example capital acquisitions tax, inheritance tax, stamp duty and property transfer tax);
- Ownership and/or residence taxes relating to   the property (including   local and national property taxes, and land tax); - Rental income taxes. (And if the overseas property is rented out, be aware that such ‘passive' income, if it accumulates in a closely-held company, may attract a surcharge if not distributed);
- Disposal taxes, such as capital gains tax, gift taxes, and death duties

However, as previously stated, the extent to which these taxes will be applied in Ireland or the destination country, and the degree to which they can be offset against each other, will vary according to the arrangement in place between Ireland and the foreign country in question. So get thee to an accountant. Or two…

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

Ireland Artist Tax Guide

Ireland Contractor Tax Guide

Ireland Entrepreneur Tax Guide

Ireland Professional Tax Guide

Ireland Small Business Tax Guide

Ireland Sportsperson / Entertainer Tax Guide

Fact-File

Part 1: Business Formation for Individuals

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