Many investors fail to grasp the fundamental principle of taxation: you cannot, based on your personal experience, say: "This is how it works."

I'm currently a graduate student working on getting my masters in Taxation.

Hamlet, I recommend finding an accountant who specializes in real estate taxation over one that is local.

And I'm a tax professional, so I understand the taxation issues.

(e) This section does not apply in determining the contacts or activities that may subject a foreign limited liability company to service of process, taxation, or regulation under the law of this state other than this article.

So he bought it in blighted condition, they assessed his sales price at the blighted rate, he held it about 150 days I think, so he got hit with a $16,000 off the top real estate tax at closing.

Its always great seeing other Irish people :) Your answer is exactly what I was looking for as regards to taxation!

And last, but not least: taxes, although I don't know about the double taxation agreement with Canada or the States, in Spain basically you end up paying the bigger rate, so it would be 20/40% (check this for more info) https://en.wikipedia.org/wiki/Taxation_in_the_Repu... plus the USC http://www.revenue.ie/en/tax/usc/ on the incomes, from which you can deduct repairs and many expenses WHILE IS RENTED (not if repairs are made between or to increase its value) and 75% of the interest paid from the mortgage.

I've been looking at properties in Santa Fe with this model in mind and they have a very strict permitting and taxation system.  

I think it's important to play by the rules and don't take issue with taxation (Hawaii, New Mexico, and many other places see great Airbnb & VRBO success with those fees), but if there's a legit way to play around the rules that's something worth looking at too.