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Investing in buy to let Brussels

Question

Hi,
i plan to be in Brussels for another 1.5-2 years and am considering buying an apartment to live in initially but then to rent out when we leave. Even though we will probably lose the abattement (unless we successfully argue for force majeure), i think it might be worth it as mortgage interest rates are lower here than in other places and also my wife and I have a better chance of getting a mortgage here than in Ireland as we are on good salaries here. Of course this investment would rely on a steady upward trajectory in the house price index! any views are welcome. cheers

anon

The economics of this really depend on your taxable situation in Ireland once you return there. You should ask an Irish accountant.

https://www.revenue.ie/en/property/rental-income/foreign-rental-income/i...

Oct 21, 2018 14:34
becasse

Two points:

Firstly, I would question whether there is a steady upward trajectory in the house price index at all. Don't forget that the purchase taxes get you off to a significant negative start.

Secondly, investment in property to let in Belgium relies on the basic income from the property (and all the income from an unfurnished property bar the PI) being tax-free. This is unlikely to remain the case if you move to another country because, in most cases, that country will wish to tax that income bar any expenses incurred.

Oct 21, 2018 16:41
Kerry

Agree with Becasse. House prices here are pretty stable. I wouldn't count on an upward surge. It is likely that in Ireland, Revenue will add the rent you get from a property here to your Irish income and it will be taxed at your highest rate. Meanwhile, if you have to rent in Dublin or any of the other large cities, rents are at an all time high. Having a mortgage in Belgium will make it impossible for you to get another one in Ireland and that's without considering the difficulty of managing a rental property in another country which should not be underestimated! Sorry if this appears to throw cold water on your plan but hopefully forewarned is forearmed. Perhaps you could consider opening a bank account in Ireland in the area your will be moving back to and save regularly with them to build up a good history and a good deposit. That would put you in a stronger position to get a mortgage for the home you would live in. Good luck in any case.

Oct 23, 2018 11:05