Firm launched to submit foreign tax returns on Irish properties

The first Irish tax firm solely dedicated to submitting tax returns in foreign jurisdictions for Irish individuals with properties abroad was launched today.

Foreign Tax Returns Ltd can now assist the estimated 200,000 Irish property owners in Spain, France, Portugal and the UK.

The Irish Revenue’s offshore assets group have indicated that this is an area they will be targeting as there is thought to be almost 75,000 non tax compliant Irish property owners alone in Spain alone.

The number of Irish people with homes abroad is seen as an area of major growth with conservative estimates at between €5bn and €6bn being invested by Irish individuals in 2006 including at least 3% of maturing SSIA’s or €495m are forecasted to be invested in foreign property.

Former tax executives Willie Kearney and Barry O’Donnel have set up the new tax firm.

They saw a niche in the market as the only dedicated Irish company to submit tax returns in other jurisdictions for Irish individuals and would, importantly, also advise these property owners of any Irish tax liabilities due on their investments.

The company will initially focus on Spain, France, UK and Portugal and will extend their operations early next year to include Bulgaria, Turkey, Romania, USA, Poland, Germany and Hungary.

Founding director of FTR Barry O’Donnell said: “The Irish Revenue have highlighted the fact they will be investigating Irish property ownership abroad and they can request information from their tax counterparts in Europe such as Spain, France and the UK. We provide ease of mind with a quick, efficient and inexpensive service with an online option which will make sure you are tax compliant abroad and at home”.

“We will initially concentrate on the 200,000 investors in Spain, France, Portugal and the UK. We see further potential in Spain as the estimated number of 100,000 property owners in Spain alone is set to rise due to the possible lowering of Spanish Capital Gains Tax from 35% to 18%.

"France is also seen as an ideal opportunity for further investment as capital appreciation has been running at 20% over the last few years and an estimated 8,000 Irish people purchased property there last year,” added Willie Kearney, co founder of the new company.

FTR are targeting anyone who wants to be tax compliant in the foreign jurisdiction in which they have invested. Because it is difficult to file a tax return in Spanish/French the aim is to take the hassle out of foreign investors lives.

They will also be targeting PAYE workers in Ireland who may have an investment property either in Ireland or abroad but do not have an accountant at present.

Willie Kearney continued: “At present, fees are €250 plus VAT for an average rental income return in say Spain. Prior year returns will be submitted for €50 – this is outstanding value, to be able to get piece of mind for such a relatively small amount. FTR will also offer an additional service of calculating Irish tax liabilities (i.e. Case III) due on these foreign properties”.