he first thing to consider when selling a property in Ireland as a UK resident is the tax implications. You will be liable to pay Irish Capital Gains Tax (CGT) on any gains made, unless you are exempt. The amount of CGT you pay will depend on the amount of the gain, your income, and your residency status in Ireland.
If you are resident in Ireland, you will be liable to pay CGT on the full amount of the gain, regardless of whether you are domiciled in Ireland or not. However, if you are not resident in Ireland, you will only have to pay CGT on the amount of the gain that you bring into Ireland.
There are a number of exemptions from CGT, including the main residence exemption. This exemption allows you to sell your main residence without paying CGT, as long as you have owned and lived in the property for at least three years.
You will also need to pay VAT on the sale of a property in Ireland, unless the property is exempt from VAT. New properties are subject to VAT at 13.5%, while older properties are exempt from VAT, unless the vendor and purchaser exercise a joint option to tax.
Declaring the sale to HMRC
If you are a UK resident selling a property in Ireland, you will need to declare the sale of the property to HMRC within 60 days of the transfer of ownership. You can do this by completing form CG14.
Foreign Tax Credit Relief
If you have to pay CGT on the sale of your property in Ireland, you may be able to claim Foreign Tax Credit Relief for tax paid in Ireland. This means that you can reduce the amount of CGT you pay in the UK by the amount of CGT you have already paid in Ireland.
Stamp duty
If you are buying a property in Ireland, you may have to pay stamp duty. The amount of stamp duty you pay will depend on the value of the property.
Estate agents’ fees
When selling a property in Ireland, you will usually have to pay estate agents’ fees. The amount of the fees will depend on the value of the property and the estate agent you use. But if you use our website you pay no commission on sale.
Other costs
There are a number of other costs associated with selling a property in Ireland, such as legal fees, valuation fees, and advertising fees.
The process of selling a property in Ireland
The process of selling a property in Ireland can be complex, so it is important to get professional advice from a solicitor or estate agent. However, the basic steps involved are as follows:
- Get your property valued.
- Choose an estate agent.
- Market your property.
- Receive offers.
- Negotiate the sale price.
- Exchange contracts.
- Complete the sale.
Conclusion
Selling a property in Ireland as a UK resident can be a complex process, but it is important to be aware of the tax implications and other costs involved. By following the steps outlined above, you can ensure that the sale process goes smoothly and that you get the best possible price for your property.
Additional tips
Here are some additional tips for selling a property in Ireland as a UK resident:
- Get your property in good condition before you start marketing it.
- Take high-quality photos of your property.
- Write a clear and concise property description.
- Price your property competitively.
- Be prepared to negotiate.
- Use a reputable estate agent.
- Get professional advice from a solicitor.
I hope this guide has been helpful. If you have any further questions, please do not hesitate to ask.
