What are tax implications?

Just lookin for some info. If you earn rent on a property in the UK but are resident in Ireland who do you pay tax to? is it split between the two countries. What rate is it taxed at? Any pointers much appreciated.

I’M no expert but AFAIK you pay income tax in the country where you reside, if you reside in Ireland you pay income tax in all your income including properties owned abroad. I’m open to correction but that’s the way I have always understood it.

You pay income tax on the full amount in both countries but you are given a credit of the tax paid in the UK against your liability in Ireland.

Thanks guys. What do you mean specifically by liability?

While we are on the topic…

I have been told as you say that one pays income tax in the country where the asset resides and then claims a tax credit in home country etc. Like the example u give above

It is still unclear to me what happens with capital gains though. Apparantely this would just be paid straight to the irish authorities and the uk tax system is woed nothing?

Ie passive income like rent, dividends from shares etc fall into the category u describe, but capital gains does not.

I don’t know for sure, but I think it varies from country to country like a lot of things. For instance, I believe that in Spain, they apply estate taxes to any properties in the country regardless of ownership country of residence.

It does vary from country to country, alright.

The UK does not charge non-residents CGT when they sell UK based property.

Ireland, on the other hand, does.

What rate does rental income get charged at in Ireland? Has it anything to do with the amount of income tax you pay on your employment?

Yes, it is counted as income, aside from the portion you can set off against the interest on the mortgage.