Where is your investment property located?

France
France
UK
UK
USA
USA
Spain
Spain
Ireland
Ireland


Filing Deadline

France Tax Deadline April 30th


French 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 France 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 French taxes that may be imposed).

In other words, as an Irish resident and Irish domiciled person, 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 French 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 French tax paid.
  • Record the French 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 French Capital Gains

When you sell your French investment property you are liable to CGT in Ireland on the amount of the gain at 25%. (You may also be liable to CGT in France – 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]

French Capital Gains Tax Paid

In most cases, upon disposal of a foreign property you will have paid CGT in the foreign jurisdiction. Therefore, depending on whether a double tax agreement exists between Ireland and the relevant country, you should be entitled to a tax credit in Ireland for any foreign tax paid on the gain.

Unilateral relief has been introduced for individuals for capital gains tax in respect of gains arising in countries with which Ireland has a double tax treaty which was in place prior to the introduction of CGT in 1975.

France is included in this list of countries and therefore the Ireland / France double tax treaty is included. What this means is that where an Irish tax resident individual pays French CGT on the disposal of a French property, a credit will be available when it comes to making your Irish tax return.

In other words, you will not pay tax twice on the same disposal (except where the Irish tax due is higher than the French tax paid - in that case the difference is payable).


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