Property Tax Ireland Individual vs Company vs Pension
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- Опубліковано 16 лип 2020
- Property Tax Ireland Review, in this video I review the taxes that affect property investment including, stamp duty, LPT, rates, VAT, capital gains and income tax.
I also review the legal structures that you can hold property including as an individual, a company (spv) or in your pension.
My name is Shane Fleming, I am a property consultant based in Dublin Ireland. I am a chartered surveyor with over 16 years of experience. Acquisitions, Investments, Rent Reviews, sales, commercial and residential property.
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/ flemingrealestate
Website:
www.flemingre.com/
PSRA 003567
#realestate #property #flemingrealestate #dublin #ireland #propertyagent #propertyinvestment #investment #tax #propertytax #shane #fleming - Навчання та стиль
A lot in this video, if you have questions please ask
This was very well researched! Can’t believe how much information is in this video.
Thanks, might of been to much in one video
amazing collection of videos man, just found this channel. Thanks a ton!
Great video as always, cheers Shane
Thank you very much! Great video 🙏👍
Thanks for the support
Thanks for making another great video! I've been trying to look up this kind of information but specific to Irish tax, but closest I was able to read up was from UK. Had no idea about the pension way. Love learning from your videos, can't wait for the next ones 😎
Gladys Pascual very glad you found it helpful. Thanks for the support
excellent video. Very clear.
Great info
Nice video thanks.
Great video Shane. I’ve a question you might be able to answer- when using the SPV route for property ownership you didn’t make any reference to close company surcharge, which I understand is an additional 20% if funds are not withdrawn or distributed elsewhere. I’ve read online that it’s possible to avoid this surcharge if a holding company is set up and the funds are distributed from the SPV to the HC. However when I queried this with my accountant he didn’t think it was possible and if so, everyone would be purchasing property through a LTD company! Any thoughts/suggestions?!
Good video
this tax on the rent is a huge factor, depending on the amount of rent you are charging you will not be able to go forward with the investment, if you combine this tax with the mortgage you might get screwed
True some good investment won’t stack up if you have to pay to much tax
@@shaneflemingre such a bad thing that most countries in europe follow this same principle, first time investors will have a hard time
Yuri CT it is costly to set up the legal structures to take advantage of the tax system and therefore only really benefit big investors. Other than the pension route, small investors can still take advantage of same
Great content again 👍 Bit disheartening for someone living abroad though....seems like a difficult market to make a property cash flow in.
It can be a bit easer if you live abroad, if you are not borrowing from Irish bank. Your tax on the rent can be a flat 20% but also depends on where you are living and what tax treaties are in place
Ah right, interesting. In Australia at the mo but won't be permanent. Will keep that in mind, thanks 👍
Can the cash reserve used for the pension fund property initial investment be from your already existing pension fund or does it need to come from external to your already existing pension fund? Thanks
Does a Non Resident Landlord only have to pay 20% tax on their rental income regardless of how much rent they receive?
Generally yes as a individual. But they may also face income taxes in their own country depending on the country
I am getting close to paying off my home mortgage but I want to rent out the home and buy a second property where I will live in. Is it possible to have the mortgage on the rental and have the main home mortgage free? It sounds complicated but it’s simply I want my dept on the investment and not on the home I live in. Is it possible to do this in Ireland? Thanks for the helpful video.
This is an interesting question. And there are some pros and cons that you would need to speak to your tax adviser about because it might depend on your personal tax.
Few things to consider. You will need 20% deposit for the second house. Or 30% deposit/equity for the property you plan to rent out.
The bank will likely give you a better interest rate for the property you plan to live in. Likely interest rate on investment property will be higher.
Again talk to a accountant/tax advisor but you will be able to reclaim the interest on the mortgage on the investment property.
To answer the question it should be possible with a good broker
@@shaneflemingre Thanks for your response, it is really helpful and I will look in to it further.
Is it possible if transfer personal property into SPV(special purchase vehicle) to save tax??
It is possible but you will have to sell it to the company so there will be tax implications. You will need to talk to your accountant
@@shaneflemingre yes there could be capital gains tax on the sale of property to the spv. Also close company surcharge will apply on undistributed income of 20%. There are also restrictions on directors income. Using a holding company to hold the shares of spv can work but you need set it up correctly. Brendan Allen chartered tax adviser
Hey man might be a weird comment but I know someone's who's grandma will probably be moving in with one of her children in the coming years she owns a house iin swords Dublin 3 bedroom and has space in the back its a semi. What do you think is the game plan renting it out? I don't know much about this stuff
cool guy not a weird question, I think the answer will come down to tax planning. If the grandma has a large pension any rent will be taxed at a higher level. If the pension is low the likelyhood is that the rent will be taxed very low or maybe not at all. Making it a good option to rent. Also I believe any care costs can be claimed back against any income tax. Best to ask an accountant that knows the situation so any tax issue can be managed for the long term.
@@shaneflemingre alright thanks for awnsering
Is there a good place to find more information on buying a property in a pension portfolio?
Rules have changed since this video and harder to get funds into it. But your local accountant should be able to point you in the right direction
@@shaneflemingre Thanks so much for responding.
👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾
Thanks a mil