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Buachaill, Barrister
Category: Republic of Ireland Law
Satisfied Customers: 11379
Experience:  Barrister 17 years experience
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We are living in England. We have bought an apartment in

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We are living in England. We have bought an apartment in Mayo which we have owned for three & half years, but it was bought on a 7 year tax break ( ie keep for 7 years and pay no tax). We are proposing to sell the apartment now for 160,000 euros. It was purchased for 90,000 euros. Would we be liable to pay tax on the property in Ireland or England? All our current tax liabilities are currently paid in the UK.

Hello, and thank you for your question. I am your Expert and I will provide the answer you require.

1. You will be liable to pay Capital gains tax on the profit you have made over the three and a half years in Ireland as this is where the property is located and where it is being sold. Essentially, your solicitor in Ireland will deduct any tax liability you have in Ireland from the sale proceeds as in Ireland a solicitor is authorised to collect taxes on any sale in Ireland. You will then be able to take the benefit of the Double Taxation Agreement in force between Ireland and the UK and have no tax to pay in the UK. As part of the process of sale in Ireland, you, as owners, will be required to get a PRSI number so that the tax may be paid with a tax number in Ireland. However, your solicitor will handle this and make you aware of how the conveyancing process works in Ireland. The rate of CGT in Ireland is 33%.

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