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capital gains france/ireland - anyone had to pay when selling abroad?


Ormx
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Hi all,

I know there have been several posts on CGT but they seem to refer to selling a French property.

I'm resident in France (2 years), so not "ordinarily resident" ( or whatever the term is) yet. We have a house in France which is our only residence. We had a house in Ireland that was rented out until recently, income tax paid in Irl. We have sold Irl house and paid the CGT in Ireland. There is no Double Taxation Agreement between Irl and France in relation to CGT. My accountant in Irl couldn't come up with a definitive answer, saying the law is "silent" on this matter. I have to approach our tax office in France and ask.

Just wondering if anyone has gone through it. What is the liklihood of having to pay twice?

thanks

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IMHO, you became resident as far as the French taxman is concerned long ago,  which could mean that you would have to pay plus-value tax in France

However, the text of the Ireland -France double taxation agreement says:

"Article 3

1. Income from immovable property may be taxed in the Contracting State in which such property is situated.

2. The term "immovable property" shall be defined in accordance with the laws of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment of agricultural and forestry enterprises, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3. The provisions of paragraphs 1 and 2 above shall apply to income derived from the direct use or from the letting of immovable property or from the use in any other form of such property, including income from agricultural or forestry enterprises. They shall likewise apply to profits from the alienation of immovable property."

(my bold and italics). Hence although CGT is not explicitly referred in the earlier parts of the treaty as being a tax covered by the double taxation agreement, Article 3 appears to extend the coverage. 

Good luck ...

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