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Rental income on Overseas holiday home

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  • 18-04-2021 9:39am
    #1
    ctlsleh
    Registered Users Posts: 776 ✭✭✭


    Hi,
    Couldn’t find anything recent on this topic.

    I’m considering buying a holiday home in Portugal in a resort with the option to opt into a rental scheme. Basically they rent in out and manage it and provide you an income and you can get a few weeks for yourself also.

    My long term plan would be to live there in the winter months.

    However has anyone any experience of the rental income tax in Portugal and the implications here? I assume I can’t offset the mortgage?
    Would I be obliged to pay income tax in both jurisdictions?


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    #2
    DmanDmythDledge
    Registered Users Posts: 883 ✭✭✭DmanDmythDledge


    You would be obliged to pay tax and file returns in both countries. Any tax payable on rents in Portugal would be offset against your Irish taxes. I wouldn’t be familiar with the Portuguese rules but you would be able to offset interest element of mortgage costs in your Irish foreign rental computation.

    I’d recommend talking to a tax advisor about what you need to do on an annual basis if you don’t already have one.


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