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Ireland

Selling Indian property while you are an Irish tax resident

You are selling a property in India but live in Ireland, and whether Ireland's 33% capital-gains tax applies turns on your domicile.

You are selling a property in India, and you are a tax resident of Ireland. India taxes the gain, and Ireland has a 33% capital-gains tax, so the fear is a heavy combined bill. For most Indians in Ireland it is lighter than that, because the remittance basis means Ireland taxes the gain only if you bring the proceeds in. But if you are domiciled, or you remit the money, Ireland's 33% applies with a credit for the India tax. Here is how the two sides fit, and why where you keep the proceeds matters.
Last reviewed: 26 July 20267 min readReviewed by Preetesh Maloo, CA

The short answer

India taxes the whole gain on your Indian property at 12.5% without indexation, with the buyer deducting TDS under Section 195. On the Irish side it turns on your domicile. If you are non-Irish-domiciled, Ireland taxes the gain only if you remit the proceeds to Ireland, so proceeds kept in India, in your NRO account, are outside Irish tax and India's 12.5% is the only charge. If you are Irish-domiciled, Ireland taxes the gain at 33% as it arises, computed in euro, and gives a credit for the India tax, so the effective rate rises towards 33% with India's 12.5% credited.

References on this page

  • India taxes the full gain: LTCG 12.5% without indexation (from 23 July 2024), no grandfathering or forex relief for NRIs, TDS under Section 195
  • Ireland's capital-gains tax is 33%, but for a non-domiciled resident it applies only if the proceeds are remitted
  • Non-domiciled and proceeds kept in India: only India's 12.5% applies
  • Irish-domiciled: Ireland taxes the gain at 33% as it arises (computed in euro), with a credit for the India tax

The India side: the whole gain at 12.5%

India taxes the full capital gain from your original cost. For long-term property sold on or after 23 July 2024, the rate is 12.5% without indexation, and as an NRI you get neither the resident option of 20% with indexation nor any currency relief for the rupee's fall, so the whole rupee gain is taxed. The buyer must deduct TDS under Section 195 on the gain, plus surcharge and cess, not the small 1% that applies to a resident seller.

Because the TDS is heavy, a lower-deduction certificate is worth getting so the buyer withholds closer to the real tax, and any excess is reclaimed by filing an Indian return. India taxes the gain whatever Ireland does; the Irish position then depends on your domicile and what you do with the money.

Ireland: 33%, but only if domiciled or remitted

Ireland's capital-gains tax is 33%, well above India's 12.5%, so the domicile question matters a great deal here. If you are a non-domiciled Irish resident, the Indian gain is taxed in Ireland only to the extent you remit the proceeds. So if you keep the sale proceeds in India, for example in your NRO account, the gain is outside the Irish charge entirely, and India's 12.5% is the only tax you pay. Remittance, bringing the money into Ireland, is the trigger, so the timing and the decision to remit are the planning levers.

If you are Irish-domiciled, Ireland taxes the gain as it arises at 33%, wherever the money is kept, and gives a credit for the India tax under the treaty. One subtlety: Ireland computes the gain in euro, converting the purchase and sale at their own dates, so movement in the euro-rupee rate can make the Irish gain differ from the Indian one, and the credit is capped at the Irish tax on the Irish-measured gain. The practical effect is that a domiciled resident pays close to 33% overall, with India's 12.5% credited against it.

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What's involved

What the CA actually does

  1. 1

    We compute the real Indian gain

    We work the gain from your original cost with the correct 12.5% NRI treatment, so the Indian tax is right and not overpaid.

  2. 2

    We cut the TDS to the real tax

    We get a lower-deduction certificate so the buyer withholds on your actual gain, not the gross, and reclaim any excess on your return.

  3. 3

    We flag the remittance lever

    As a non-dom, we make clear that keeping the proceeds in India keeps the gain outside Irish tax, so remitting is a deliberate choice.

  4. 4

    We support the Irish credit

    Where you are domiciled or remit, we give your Irish accountant the India-tax-paid detail for the 33% computation and the credit.

What to have ready

Documents you'll typically need

  • The original purchase deed and rupee cost
  • The sale agreement and the buyer's TDS
  • Whether you are Irish-domiciled or non-domiciled, and your remittance plans
  • Your PAN and Irish tax details

Frequently asked questions

Common questions

Selling Indian property from Ireland?

Tell us the figures and your domicile. A practising CA will size the Indian tax and flag the remittance lever on a free call, no obligation.

No card, no obligation. All certification and filing work is handled by ICAI-registered practising Chartered Accountants.