Tax on Second Property when living abroad

BarraOG

Hi,

I currently live abroad with my family where we own an apartment.

We plan to buy a house in Ireland and move back in a year or two. This will involve owning two properties at the same time, but we will sell our apartment once were settled back in Ireland. We are aiming to buy something for around 200k.

What taxes, besides 1% stamp duty, will we have to pay on buying a house in Ireland? What taxes will we be required to pay each year on the property?

If we were to rent the house prior to moving, what taxes would we have to pay on the rent earned?

Thanks,

Barry

Victor

On purchase, you may be subject to stamp duty and / or VAT - they VAT applies to new or 'improved' properties. The situation has evolved over the last few years. http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html and http://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/value_added_tax.html

There are a small number of tax-based credits / incentives, but most of these have expired. Home Renovation Incentive allows certain home improvements to be partially written off against Irish income tax / PAYE.

After that, you will need to pay Local Property Tax (LPT). http://www.citizensinformation.ie/en/money_and_tax/tax/housing_taxes_and_reliefs/local_property_tax.html Note that water (mostly Irish Water) and refuse / recycling (mostly contractors) charges need to be paid separately. http://www.citizensinformation.ie/en/environment/water_services/water_charges.html and http://www.citizensinformation.ie/en/environment/waste_management_and_recycling/domestic_refuse.html

If you rent out the property, you will need to pay a registration fee to the PRTB and profits are subject to income tax, PRSI and USC. You can only write off the interest on any loan at 75%.

On sale, you may be subject to Capital Gains Tax, although there is an exemption for a 'principal private residence'.

If the property changes 'principal private residence' status, things are more complicated.

If part of the premises is used for business, council rates apply.

Carawaystick

lpt is 315 on houses 150-200k
405 on houses 201k-250k
per annum

A TV license is 160 per annum, but the tennant pays if rented not the landlord.