Overseas ownership of family property

ibh

Hi, Hope this is in the right place for my query..

I've been living abroad for 15+ years and intend on continuing to live away from Ireland for the foreseeable future. My parents have a rental property which is currently rented by a family member who is on social welfare / disability. The long term expectation is that this family member will struggle to take responsibility for ownership and the suggestion is that i take over the ownership and continue the agreement of renting to them.

Aside from the implications of overseas property ownership in my country of residence, which will be dealt with as an income that i will need to declare with in my annual tax returns, is there any reason why i / we would be better to explore a different transfer mechanism such as a family trust?

Not looking to profit from the ownership but i will have a higher tax bill due to this income so i want to ensure i am not getting shafted. My original thought was to have all rental income go into an account that i would use for maintenance upkeep.

Any advice would be greatly appreciated.

Thanks,

cnocbui

Open to correction on this, but it's my understanding that Revenue heavily tax rental income in Ireland, so under double taxation rules it might not inflate your tax burden where you live by much, if at all. Your local tax rate on that income would have to be higher than the Irish one for you to have a difference to pay.

Mrs OBumble

https://www.boards.ie/discussion/comment/123188357#Comment_123188357

Only if the OPs country of tax-residence actually has a dual tax agreement with Ireland.

OP, you and your parents really need professional advice on this.

This includes thinking through how you would practically manage the property from overseas once your parents are deceased or elderly and not able to assist.

Tax wise it's probably best if your parents don't gift the house to you whie they are still alive.

ibh

Good point. Hadn’t even thought about paying tax here on it.

ibh

Yes, I think we’ll go down that route as I’m currently in Ireland for a quick trip.

Not even sure who a professional is in this situation? Accountant or Solicitor I presume..

Thanks for the guidance.

cnocbui

https://www.boards.ie/discussion/comment/123189929#Comment_123189929

I'd go with an accountant, though not a really big firm - going on my harsh experience with one.