The rules surrounding Capital Gains Tax are complex and I strongly suggest that advice is sought from an accountant that is familiar with the rules. The time to get this advice is before you sell or move permanently back to Ireland as once the property is sold or you move back it may be too late to minimize your liability.
The tax system is complex and not every street corner accountant is familiar with the rules relating to foreign properties, good advice relating to capital gains tax can result in you paying much less tax whilst bad advice could mean you end up paying a lot of tax that you do not need to. If you need to find an accountant who is familiar with overseas properties we may be able to recommend one in your area, please just pop me an email on firstname.lastname@example.org.
Does the depreciation I claim every year affect the Capital Gains calculation?
The short answer is yes but it is only a portion of that amount that is involved, in order to illustrate the principle involved I will use a simple example. As I said above it is imperative to get proper advice from a knowledgeable accountant on capital gains tax in order to avoid inadvertently ending up paying more tax than you should.
Joe bought a property in Dublin in 2003 for €350,000 (AUD$619,000), in 2007 he left Ireland for Australia and in 2010 he became a permanent resident.