When a non-resident vendor sells property in Ireland, their solicitor is obliged to withhold all of the sales proceeds until they receive Capital Gains Tax (CGT) clearance from the Revenue Commissioners.
This rule protects solicitors from secondary tax liability and ensures all taxes that are owed affecting or arising from the property are paid. This is particularly significant if the property was let at any time before the sale, as the Revenue Commissioners will want to ensure all income tax on the rental income is fully paid.
In order to get clearance, the following need to be submitted online to the Revenue Commissioners:
- A signed non-resident declaration,
- Copy of the signed contract of sale,
- A CGT computation showing the tax due,
- Proof of payment of the tax due,
- Details of historic use of the property during the non-resident’s ownership.
Once submitted correctly, the Revenue Commissioners have a 35 day window to accept or audit the return.
One exception to this obligation is if no chargeable gain arises AND the property was not rented out during the period of ownership. In that instance, no return or clearance is required.
We can assist with all aspects of selling property, whether you are resident or non-resident. Please contact us here at info@mcgrathmullan.ie or call us +353 (0) 1 873 5012 .
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