First Time Buyer Query

kosa

Hello,

My parents gave me money to buy a flat in Poland few years ago. It was 10k euros (100% of property value, funny money:) ). Did I loose First time buyer status?

http://www.revenue.ie/index.htm?/leaflets/first_time_buyers.htm
What is the position in the case of a gift of part of the purchase monies?

Where a first time buyer receives an unconditional gift of monies which are used to purchase a house, he/she will not be precluded from claiming first time buyer relief.

How can I understand this?

Glenbhoy

Yes, you have lost first time buyer status. The piece of legislation you refer to is to ensure that persons buying property with the help of another (non ftb, eg parents, friends....) are still deemed to be ftb.
Once a person has owned a property (regardless of how it was funded), you lose ftb.

The_Conductor

Glenbhoy is correct- once you have owned property here or abroad, irrespective of how it was funded, you have exhausted your Irish FTB status.

kosa

Its a bad news. Have to wait, house prices are going down. Thanks lads

Del2005

I read ages ago where someone set up a company to purchase a property overseas to avoid losing FTB status. Made a lot of cash on it and used that to buy a place here with their FTB still intact. Not much good to you now thought!

The_Conductor

Del2005 wrote:

I read ages ago where someone set up a company to purchase a property overseas to avoid losing FTB status. Made a lot of cash on it and used that to buy a place here with their FTB still intact. Not much good to you now thought!

Its a form of tax evasion- as the company would normally be subject to CGT on the sale of the property- whereas a private person could put the proceeds towards a new house without attracting CGT. Thats totally aside from "beneficial ownership" rule.

indiewindy

Owning property through a company is a very expensive way to do it, whatever about ftb status having to make annual returns, accounts and then if you sell it its very dear to get the money back into your pocket

Glenbhoy

Del2005 wrote: »

I read ages ago where someone set up a company to purchase a property overseas to avoid losing FTB status. Made a lot of cash on it and used that to buy a place here with their FTB still intact. Not much good to you now thought!

The revenue look at the substance of each transaction, thus as smcarrick says, in their book this would just be straightforward evasion.

MLB

And does not own nor the house neither the appartment?
Thanks in advance for any clarification in this matter.

The_Conductor

MLB- providing the piece of land you bought did not have a dwelling on it, nor have you constructed a dwelling on it, since purchase, and you have not owned a dwelling- then you are classified as a First Time Buyer- and can claim favourable stamp duty. Please visit the link quoted by kosa in the first post on this thread- it will explain in more detail.

MikeJJ

smccarrick wrote: »

Glenbhoy is correct- once you have owned property here or abroad, irrespective of how it was funded, you have exhausted your Irish FTB status.

Apologies for dragging up an old thread, but I've been doing a bit of digging around a similar subject and have some questions....

If someone has owned a property abroad, but does not declare it when buying a first property in Ireland, and therefore claims the FTB stamp duty exemption, how will the Irish Revenue find out whether they have owned abroad or not?

Surely they aren't going to search the land registries of every country around the world to see whether someone of the same name has owned in that country?

If there is anyone who knows how / if they do this it would be great if they could reply.

Cheers

The_Conductor

We hold reciprochal tax arrangements with many (but not all) countries. Its entirely plausible that the tax authorities of other countries may contact the Irish Revenue Commissioners concerning ownership of property in their territory by Irish nationals- and any tax associated with that property that may be due. French authorities are already infamous for this approach- and as it becomes more politically unpalatable for the likes of the Portuguese/Spanish/Greeks etc to levy more taxes on their own citizens- the possible tax associated with possible rental income of holiday homes- would be a very juicy target for them to focus on.

I know the Portuguese officials have my Irish tax details- including my RSI number- from my dealings there- its not rocket science for them to start joining the dots if they think there might be money in it for them (there isn't- but they don't know that).

Germany already levies a property tax on all property held by its citizens overseas- France will attempt to levy a wealth tax on any property owners it considers to be domiciled on French territory (regardless of whether this is property or not)- it would be a simple reciprochal arrangement for Irish officials to swap information.......