Overseas home owners may be hit with tax bills

THOUSANDS of owners of holiday homes abroad may be hit with hefty tax bills following a Europe-wide directive authorising foreign Governments to pass on information to the Irish Revenue regarding Irish-owned property in that country.

A bid to track down “hot money” sent abroad has led to the Revenue Commissioners writing to people who own homes in countries such as Spain, France, Bulgaria, Turkey, and other popular destinations.

The letters received by Irish residents affected by the new crackdown are asking them how the properties were financed, and how they are being utilised. “If the property is being let, please forward a schedule of the lettings for all years,” it states.