Double taxation tax law

JackGrange

I would like some help in relation to the double taxation laws between Ireland and Spain.



This year I moved to Spain permanently to live and work, but I still own a rental property in Ireland.
When I do a tax return for 2013 next year should I do it in Ireland or Spain; or both?



In Spain there is a new tax law that states that if you are living here more than 183 days in a year you need to inform the Spanish tax office of all assets over €50,000 that you have outside of the country. Does anyone know more about this law?

namenotavailablE

Unfortunately, this type of request is beyond the scope of this forum as it's rather specialised- it's best that you engage an accountant to deal with it.

Fitz123

Generally speaking immovable property is taxed where it is situated.

In your own case you potentially require both local Spanish and Irish tax advice. A lot more detail would be required before someone will interpret a double tax treaty for you. It may be a cost to you now, but getting proper advice now may save you a lot of headaches or tax difficulties down the road.

luckyboy

JackGrange wrote: »

I would like some help in relation to the double taxation laws between Ireland and Spain.



This year I moved to Spain permanently to live and work, but I still own a rental property in Ireland.
When I do a tax return for 2013 next year should I do it in Ireland or Spain;

Not sure about Spain but you'll still be required to do an Irish return. If you only moved to Spain in 2013, you will still be considered to be "ordinarily resident" in Ireland for the years 2013, 2014, and 2015.

The_Bot

Fitz123 wrote: »

Generally speaking immovable property is taxed where it is situated.

In your own case you potentially require both local Spanish and Irish tax advice. A lot more detail would be required before someone will interpret a double tax treaty for you. It may be a cost to you now, but getting proper advice now may save you a lot of headaches or tax difficulties down the road.

Fitz is right here and virtually all double tax treaties that Ireland has entered into allocates primary taxing rights to Ireland in respect of income from immovable property (i.e. real estate) located in Ireland. This generally applies irrespective of the residence position of the individual concerned.

Spain may also tax the Irish income but the Spain/Ireland double tax treaty should operate to prevent the double taxation of that income.

As mentioned by Fitz, seek specific Irish and Spanish tax advice as there would also be other tax issues to consider.

JackGrange

Thanks all,


I have contacted an account here in Spain and yes it’s correct that the income tax on the property will be paid in Ireland.




Q; Will I still need to pay PRSI contributions when living abroad?