Where is your investment property located?

France
France
UK
UK
USA
USA
Spain
Spain
Ireland
Ireland


Filing Deadline

Spain Tax Deadline December 31st


Spanish Property Taxes

Tax Residency

Irish Residents are taxable on worldwide Income and Gains.You are considered tax resident in Ireland if you spend at least 183 days here per year or 280 days over a two year period.

As an Irish tax resident and Irish domiciled person you are liable to tax on your worldwide income and gains. Therefore, if you own and rent a property in Spain you are liable to Irish income tax on the rents you receive and Irish capital gains tax ("CGT") on the gain if you decide to sell the property. (In addition to any Spanish taxes that may be imposed).

In other words, as an Irish resident, no matter where your property is situated, if you receive rental income or you make a gain on the sale of your property - you are always assessable to tax in Ireland.

Irish Taxation of Spanish Rental Income in Ireland

  • Treat the property as though it is an Irish investment property and deduct all of the allowable deductions available under Irish legislation.
  • Tax the net amount at the marginal rate up to 41% (Plus PRSI & Levies).
  • Take a credit for the Spanish tax paid.
  • Record the Spanish income received as Schedule D Case III in your Irish income tax return and submit the return together with your Irish Case III calculation. Note: if you calculate a loss, this can be carried forward and set against any future Case III liabilities.

Irish Taxation of Spanish Capital Gains

When you sell your Spanish investment property you are liable to capital gains tax in Ireland on the amount of the gain at 25%. (You may also be liable to CGT in Spain – see below).

Irish CGT Payment Dates

  • If you dispose of a chargeable asset on or before 30 November in the tax year, you are obliged to pay Irish CGT at 25% on the gain by 15 December in that tax year.
  • If you dispose of a chargeable asset between 1 December and 31 December in the tax year, you are obliged to pay Irish CGT at 25% on the gain by 31 January in the following tax year. [Differing rates and dates apply to disposal in 2008 and prior years]

Spanish Capital Gains Tax Paid

In most cases, upon disposal of a foreign property you will have paid CGT in the foreign jurisdiction.

However, it should be noted that any Spanish CGT paid by an Irish resident individual should be creditable against any Irish CGT arising on the same disposal under the Ireland/Spanish double tax treaty.


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