Capital gains?????

Posted: Tue Apr 19, 2022 8:20pm

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Sligogent

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I am in process of buying a property in Cabo Roig area, no deposit down just yet he asking for 5k but I will only put down 3k, not my main issue

I read here some time back could be misunderstanding , If I purchase here in Coba Roig and become a Resident Say 12 months time I sell my main residence in Republic of Ireland 🇮🇪 and bring proceed to Spain to help with living expenses, Now my query, Will incur any Tax penalties in proceedings with my move to Spain 🇪🇸 in this way,

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Posted: Tue Apr 19, 2022 10:27pm

Kimmy11

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Posted: Tue Apr 19, 2022 10:27pm

Hi Sligogent,

Regarding the "reservation deposit", you don´t say whether it´s the selling agent or the owner asking for €5k, but in any event, you shouldn't pay anything to anyone other than your independent lawyer.

As for Capital Gains Tax, if you sell your main residence in Ireland in the tax year prior to becoming tax resident in Spain, any CGT liability will be due to Ireland, rather than Spain.

Kind regards,

Kim

Posted: Thu Apr 21, 2022 8:53am

Davebev1

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Posted: Thu Apr 21, 2022 8:53am

If you sell any property that is not your place of primary residence then you will be liable to pay CGT in the country in which you are a tax resident - if you have already moved to Spain a year earlier then that will be Spain. I am not sure about tax laws in Ireland but you may well be liable for CGT in Ireland too as it will not be selling your primary residence as that will already be in Spain. If you sell the Irish property before moving to Spain you will be selling the property in which you are still living, your primary residence, then there would be no CGT due.