Buying non EU property and taxation...

...when buying and selling property outside the EU, what are the tax implications.

Is it simply that one pays CGT here on any profit, and whatever taxes arise in the country where the property is situate in the absence of a tax treaty between the two countries?

Culchie

Deleted User wrote:

...when buying and selling property outside the EU, what are the tax implications.

Is it simply that one pays CGT here on any profit, and whatever taxes arise in the country where the property is situate in the absence of a tax treaty between the two countries?

It will depend Conor whether there is a tax reciprical agreement in place, as well as the specific countries tax regime.

e.g In Croatia, there is no capital gains if you keep property 3 years before selling. However Ireland has tax agreement so 20% will be payable ... if there wasn't such an agreement is place it would be 0%

If you sell within 3 years though, there is a 35% tax payable, I suppose to help stem mass speculation on their coastline properties.

So...it depends

Thanks Culchie...though the Dalmatian coast way too pricey for the guys I know!!

A few friends want to go in real cheap - Belgrade.

Culchie

Well, as you know, location location location.

I think Belgrade definitely has potential, Serbia (for reasons which we won't go into here) has a sympathetic ear in the EU at the higher echelons, and there is significant infrastructural investment taking place.....and there is a stability and reconcilaition process that seems irreversible at this stage.

Since Gotovina is now in The Hague, the focus is very much on Mladic and Karidic .... if they are handed over (and I think they will be before long), you can see that they could well be looking at EU entry by 2011/12/13.

Montenegro (They vote for independence next year from Serbia) is already doing well in the coastal areas, and already use the Euro as their currency .... Romania is a country I personally think will be the next 'hotspot', as it has a fantastic coastline as well.

Culchie

Culchie wrote:

Montenegro (They vote for independence next year from Serbia) is already doing well in the coastal areas

Yep. Bit too much like Croatia in terms of pricing. The dream would be something on some island like Hvar, but for now it's all just a gamble in Belgrade.

Thanks for the info.

Brendan552004

I think it comes down to the word "Domicility" where do you reside?. Taxes are due where you live including foreign income.

Culchie

Absolutely Brendan, I took it for granted he was asking from an investment point of view, still living in Ireland.

Kind of, in the sense that the idea is to make a quick buck and put it back in and so on and so forth until there is enough to keep back property.