Questions and Answers
Foreign Rental Loss
Q. I have a rental property in both Ireland and Spain. In 2017 I made a profit on my Irish rental trade but a loss in Spain. I presume I can offset the losses in Spain against the profits in Ireland?
A: Unfortunately, the answer is no.
You can offset that loss against profits from other foreign rental properties that you own or carry the loss forward for offset against any future foreign rental profits. You cannot offset a loss from foreign rental properties against Irish rental profits.
If you had a rental profit on your foreign rental property then you may have to pay tax in that country also.
You may be able to deduct some, or all, of the foreign tax you have paid when you are calculating how much Irish tax you owe. The amount that you can reduce your Irish tax by will depend on whether Ireland has a Double Taxation Agreement (DTA) with the country your property is located in.
Date published 18 May 2018
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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