Sunday Business Post 06.08

Dublin firms team up to provide overseas advice
(June 2008)

The Dublin firms Property Tax International and Tom McGrath & Associates have teamed up to provide a new joint tax and legal service for overseas property investors.

Solicitor Tom McGrath of Tom McGrath & Associates said the new service would complement both firm's existing services. "We have tied up with Property Tax International to offer a one-stop shop to existing and future clients for any legal and tax issues involved with buying and owning a property abroad," said McGrath.

"While assisting certain clients in determining whether they were the registered owner of their overseas land and property, and whether planning permission was ever granted for the site, I found that a number of them were still unsure of what taxes they are required to pay," he said.

"We are constantly telling clients who are investing in property overseas that they should do their homework before buying.

"They should seek legal and tax advice before any purchase abroad, because if they were making the same purchase here, they wouldn't hesitate to seek advice."

Colm Murphy, director of marketing at Property Tax International, said the new service would handle all of the legal and taxation issues that needed to be addressed when buying a property abroad.

"Too many people buy a property in an overseas jurisdiction without up-to-date information, and they often realise later that they were given the incorrect tax advice by agents and that they are liable for hefty tax sums that they have to rectify," said Murphy.

"Those willing to part with large sums of income without conducting due diligence are exposing themselves to huge potential problems, which they could mitigate by seeking advice before buying from independent sources. They should be fully aware of all the taxes and legal costs they will have to pay."

Murphy said investors should also be aware of the ongoing costs of owning a property and should have an exit strategy, as with any other type of investment.

Both Murphy and McGrath said many people who had bought overseas were entirely unaware of the whole issue of double taxation agreements, and that even if they didn't rent out a property, in some countries they could be liable for tax on perceived rental income.

The Revenue Commissioners' investigations into Irish investors' properties abroad has spurred many to resolve any outstanding taxes they may have to pay in the past few months.

The fee for the service varies depending on the individual case and it can be discussed with both firms. "Nobody likes paying fees but people wouldn't dream about buying a property in Ireland without using legal services, and it shouldn't be any different when buying abroad," said McGrath.

McGrath said that since the slowdown in the property market, he had noticed buyers becoming much more cautious when purchasing abroad. But he said there was a steady trickle of lifestyle buyers and that serious investors were still purchasing in eastern European countries, such as Poland.

"It will never go back to the frenzy of Irish investors buying overseas but that's not a bad thing if it makes people more aware of their responsibilities," he said.

Property Tax International provides a range of tax services such as filing tax returns at home and in the country in which the overseas property is located.



Tom McGrath & Associates specialises in assisting clients with legal advice on purchasing property overseas. More details from Property Tax International at Lo-Call 1890-930393 or Tom McGrath & Associates at 01-6610707.