Irish residents with Spanish rental property must make two income tax returns one in Spain and one in Ireland
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 a foreign country you are liable to Irish income tax on the rents you receive and Irish capital gains tax on the gain if you decide to sell the property.
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.
Non resident landlords in Spain pay income tax at the current rate on gross income, Unlike Ireland there is no deductions for expenses or allowable interest.
In Ireland the landlord files an income tax return as normal taking the Spanish rental income and deducting allowable expenses. We can then take a credit of the tax paid in Spain.
Losses on foreign rental income can only be carried forward against future profits, Not used against Irish income.
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