Dealing with disposals of property for non-resident vendors

Note: This is not the most up to date Practice Note on this issue. Practitioners should review the most recent Practice Note on tax clearance for non-resident vendors issued in March 2025.

The Taxation Committee wishes to remind practitioners that they may have a secondary liability to Capital Gains Tax and/or Income tax in circumstances where they act for a non-resident Vendor in relation to the sale of a property in the State.  Sections 1043, 1034 and 1035 of the Taxes Consolidation Act 1997 (“TCA”) refer.

Practitioners should ensure that they have sufficient information to prepare a return, if necessary, and that they should seek an Indemnity from their client in respect of any liability to tax, penalties and interest arising by virtue of sections 1034, 1035 and 1043 TCA.  The Committee further recommends that Practitioners ensure that they have an irrevocable authority from their client to deduct and remit Capital Gains Tax/Income Tax to the Revenue Commissioners and to withhold the sales proceeds until such time as all tax affairs are in order. 

Note: This is not the most up to date Practice Note on this issue. Practitioners should review the most recent Practice Note on tax clearance for non-resident vendors issued in March 2025.