Owning property elsewhere in the EU? Here’s what Irish taxpayers need to know

As more Irish residents invest in rental property across Europe, I’m often asked the same question:

“Do I pay Irish tax if the income or sale proceeds come from another EU country?”

The short answer: yes, in most cases.

If you are tax resident in Ireland, you are generally taxable here on your worldwide income and gains, including:

• Rental income from EU properties

• Capital gains on the sale of EU property

Even where tax is paid abroad, the income or gain must still be declared in Ireland.

Key points to be aware of:

• Rental income is usually taxed first in the country where the property is located

• Ireland then taxes the income again, giving a credit for foreign tax paid (under Double Tax Agreements)

• Capital gains on EU property are subject to Irish CGT at 33%, with credit for foreign CGT

This is an area Revenue pays close attention to, and failures to disclose foreign income can lead to interest and penalties.

Cross-border property can be a great investment, but the tax treatment is rarely straightforward. Planning ahead, especially before selling, can make a significant difference.

If you have overseas rental income or are thinking of disposing of EU property, professional advice is essential.