Legal ownership of property in Ireland is divided into freehold and leasehold ownership.Freehold is the highest category of ownership in Ireland and in most cases effectively confers absolute ownership. Leasehold ownership usually confers rights of exclusive possession and use of land for a limited period of time, subject to certain conditions.
A real estate owner can also give non-exclusive rights, , to third parties to use the land, such as granting an easement . If correctly registered, easements are binding on any future owners of the property.
Last modified 13 Mar 2025
Currently there is no general prohibition on foreign investors acquiring Irish real estate. Freehold and leasehold estates can be owned by local or international individuals or companies.
There may be some practical matters relating to registration that should be considered where a foreign purchaser acquires registered land. As part of an application for registration or to deal with the land in general, some or all of the following may be required to be provided:
The new Irish Foreign Direct Investment Screening regime came into effect in January 2025. This follows EU legislation introduced in 2019. The Irish screening mechanism provides that transactions meeting certain criteria will need to be screened by the Department of Trade and Enterprise. This includes any acquisition of control of an Irish-based asset or undertaking by a non-EEA or non-Swiss individual or undertaking (a so-called Third Country undertaking), with a transaction value of over EUR 2 million, and where the target asset or undertaking falls into a 'sensitive sector'. These sensitive sectors include critical infrastructure, including the land used for such infrastructure.
Last modified 13 Mar 2025
Pre-emption rights are not generally imposed by statute in relation to commercial property. However it is open to a property owner granting rights to a third party to negotiate that the third party is not able to dispose of the property without offering the owner first refusal.
There is legislation currently being considered by the Irish Government that if enacted would, in certain circumstances, oblige a property owner to offer to sell the property to the residential tenant in occupation of that property before selling it to another party. This legislation has not yet been enacted and specific advice should be obtained on a case- by- case basis.
Last modified 13 Mar 2025
Property transactions in Ireland are generally governed by case law and legislation.
A broad range of legislation affects such transactions including but not limited to that covering:
Last modified 13 Mar 2025
A broad range of legislation affects property transactions in Ireland, including that covering:
In addition transfers of title to hotels, restaurants and pubs are subject to certain liquor licensing legislation.
The legislation that affects a property transaction should be considered on a case-by-case basis.
Last modified 13 Mar 2025
Title to real estate is transferred by means of a deed, a legal document which is signed and delivered by the parties as evidence of the agreement.
Last modified 13 Mar 2025
There are two systems of registration of property interests in Ireland namely the Land Registry and the Registry of Deeds, both of which are operated by the Tailte Eireann (formerly Property Registration Authority). The two systems are mutually exclusive.
The Registry of Deeds is the older system and is most frequently encountered in urban areas. This is simply a record of transactions rather than a record of ownership.
Most property outside urban areas has now been registered with the Land Registry, which is a more modern system of registration of title guaranteed by the state. The purchaser (for value) of a property consisting of a Registry of Deeds title must now register that title in the Land Registry by way of an application for first registration.
Yes. The transfer of title is recorded or registered in either the Registry of Deeds (a record of transactions) or with the Land Registry (a more modern system of registration of title guaranteed by the state). On a transfer of title for value, property, title to which was previously registered in the Registry of Deeds, is now subject to compulsory registration in the Land Registry.
Yes but it is not common and it is not used as a substitute for a buyer’s investigation of title to a property. It is generally only used to insure against a specified defect in title
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While there is no legal requirement that a conveyancing transaction follow a particular set of steps the normal steps involved are:
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The buyer's solicitor will carry out due diligence before the buyer enters into the contract for the sale of the property. This due diligence will usually include a full investigation of title, carrying out searches against the property and technical due diligence.
The seller's solicitors will also prepare responses to a standard list of queries relating to the property for the buyer's solicitor to review.
The parties will not enter into the contract of sale until all investigations are completed. Until the contract of sale is entered into, either party may walk away from the deal.
Last modified 13 Mar 2025
If the property is a family home and held in the name of one spouse or civil partner, prior written consent from the other spouse or civil partner is required on the sale contract.
If the transaction constitutes a disposal of land by a state body then statutory consent will be required in accordance with certain statutory provisions.
Consent is required from any lender who has a security interest in the property being sold unless the mortgage is to be paid off at completion (which is the most common scenario).
Consent may be required from other parties such as the landlord if the land is leasehold, or a management company where the property is part of a business estate.
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Yes. The contract must be in writing and must be signed by vendor and purchaser, or their authorized agents.
Virtually all contracts for the sale of land are in the form of the Law Society of Ireland Conditions of Sale (2023 Edition), a 28-page document containing the following:
Virtually all contracts for the sale of land are in the form of the Law Society of Ireland Conditions of Sale (2023 Edition), a 28 page document including the following:
It might also contain provisions regarding how the property will be managed between exchange and completion, and how any income will be allocated between the buyer and the seller, particularly where completion will be some time in the future or if the sale concerns an investment property.
Contracts also invariably contain provisions relating to insurance and what would happen if the property is damaged before completion
In real estate transactions, payment of a 10% deposit on exchange of contracts is usual.
A typical Share Purchase Agreement will include details of the property owned used or occupied by the target company and real estate warranties agreed between the parties to the SPA.
Last modified 13 Mar 2025
Once contracts have been exchanged, the buyer's solicitor normally raises a set of standard questions (Requisitions) relating to the seller's title to the property, covering details of the rents, outgoings, rights, covenants, conditions, liabilities, planning and taxation. The seller’s replies to these Requisitions may be relied upon by the buyer.
The warranties provided by the seller are those provided in the Conditions of Sale (a standard form published by the Law Society of Ireland) and replies to requisitions on title. Usually the parties will agree to include certain special conditions which amend the position as set out in the general conditions.
Generally, it is the buyer's responsibility to satisfy itself about all aspects of the property.
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The buyer can sue the seller for any misrepresentation in relation to the terms of the contract and the responses to the formal Objections and Requisitions on title.
Last modified 13 Mar 2025
An investor must consider the planning (zoning) and environmental aspects of any property transaction.
The following public law aspects are relevant to the acquisition of real estate:
Depending on the use of the property, buyers may also need to consider energy efficiency regulations, employment law and health and safety rules.
Part of the buyer's investigation will cover the site's planning history and, in particular, whether the buildings have been duly authorised and the current use of the property is permitted by law. There are also statutory regulations relating to building works, and buyers should verify that the property complies with these.
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Yes. While the principle of 'polluter pays' generally applies, the Environmental Protection Agency (EPA) will focus its regulatory efforts on whoever is, or appears to be, for the time being in occupation or control of the property.
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A buyer can carry out a planning search to find out the zoning and planning permissions affecting the land. When a seller demonstrates its title to a buyer they should also provide information on the site's planning history and show how the existing use is authorised his planning search should be read in conjunction with information on the site's planning history provided by the Seller
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Yes.
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Compulsory purchase by a public body is possible under Irish legislation. Compensation is payable. In default of agreement between the parties, compensation is assessed by arbitration under the Acquisition of Land (Assessment of Compensation) Act 1919, as amended.
The principal rule requires that the assessment of the value of the land is made on the basis of the amount the land might be worth if sold on the open market on the date the landowner is served with notice by the public body requiring the acquisition.
Last modified 13 Mar 2025
The stamp duty rate on a transfer of non-residential property (on or after 9 October 2019) is 7.5%. The stamp duty rates on a transfer of residential property are 1% on the first €1 million and 2% on any excess.
The indirect acquisition of real estate in Ireland through the acquisition of shares in an Irish special purpose vehicle company may, in certain cases, be subject to stamp duty at the rate of 7.5% where the shares derive their value wholly or partly from the underlying real estate, which is normally paid by the buyer.
The Stamp Duty Refund Scheme provides for a refund mechanism where residential dwellings units are built on non-residential land. It operates to reduce the stamp duty rate for qualifying residential developments to 2% where higher stamp duty had been paid on the acquisition of the land.
The scheme was due to expire for new construction commencing after 31 December 2022, but has now been extended by three years to 31 December 2025.
Value Added Tax (VAT) will usually be chargeable on the acquisition of commercial real estate. In relation to new buildings, i.e. one which has been developed in the previous 20 years or redeveloped in the previous 5, the VAT rate charged will be 13.5%. The sale of old properties is exempt from VAT.
The sale of old properties are generally exempt from VAT. In order to avoid a claw back of VAT that the seller may have previously recovered, both parties may jointly opt to have the sale subject to VAT. The sale will be subject to VAT where there is a contract, in connection with the sale, for the property to be developed.
The Capital Goods Scheme (CGS) applies where a party has been charged VAT on the acquisition or development of a property and they are engaged in business. CGS is a mechanism for regulating the amount of VAT reclaimed over the VAT-life of a capital good, i.e. a developed property. Where there is a change in the proportion of use for taxable purposes for any year in comparison with the use during the initial 12 months (initial interval), an adjustment of a proportion of the VAT reclaimed will be required
In relation to the disposal of a property, VAT is paid to Revenue on a bi-monthly VAT return during which the sale closes. For the letting of a property, VAT is paid to Revenue on a bi-monthly VAT return in which an invoice is issued. Where the CGS adjustment applies, VAT is paid to Revenue on a bi-monthly VAT return each year following the financial year end.
The disposal of the real estate may give rise to capital gains tax for the vendor, currently at the rate of 33%, regardless of where the vendor is resident.
The disposal of shares in a company which derives its value or the greater part of its value from Irish real estate may also give rise to capital gains tax for the vendor, currently at the rate of 33%, regardless of where the vendor is resident.
The Local Property Tax (LPT), which came into effect from 1 July 2013, is a yearly tax payable on the market value of residential property. The LPT is administered by the Revenue Commissioners. It is a self-assessed tax and the property owner must determine the market value of the property. The LPT charge is based on the valuation of the property as at 1 November 2021. The valuation on this date determines the LPT charge for each year up to 2025.
Certain types of property are exempt from the LPT, including properties unoccupied for extended periods due to illness of the owner, properties purchased, adapted or built for use by incapacitated persons, and properties that are fully subject to local taxation of commercial property, and certain properties used by charitable bodies. There are qualifying conditions necessary to avail of each of these exemptions.
Rental income is taxed at the rate of 25% where held by a company which is resident in the jurisdiction or a non resident company carrying on a trade here through a branch or agency subject to deductions which may be available for certain costs incurred in connection with the rental business.
Last modified 13 Mar 2025
The indirect acquisition of real estate in Ireland through the acquisition of shares in an Irish special purpose vehicle company may, in certain cases, be subject to stamp duty at the rate of 7.5% where the shares derive their value wholly or partly from the underlying real estate, which is normally paid by the buyer.
The disposal of shares in a company which derives its value or the greater part of its value from Irish real estate may also give rise to capital gains tax for the vendor, currently at the rate of 33%, regardless of where the vendor is resident.
Last modified 13 Mar 2025
What are the categories of property right that can be acquired? Are there any interests in real estate other than exclusive ownership?
Legal ownership of property in Ireland is divided into freehold and leasehold ownership.Freehold is the highest category of ownership in Ireland and in most cases effectively confers absolute ownership. Leasehold ownership usually confers rights of exclusive possession and use of land for a limited period of time, subject to certain conditions.
A real estate owner can also give non-exclusive rights, , to third parties to use the land, such as granting an easement . If correctly registered, easements are binding on any future owners of the property.
Last modified 13 Mar 2025