There are a number of options, including:
Last modified 1 May 2025
The direct acquisition of real estate in Ireland by an individual, partnership or a company will give rise to a stamp duty liability. The rate is 7.5% for commercial real estate. The rate of stamp duty on residential real estate is 1% on the first EUR 1 million, 2% on the balance of any amount up to EUR 1.5 million and 6% on the balance of any amount over EUR 1.5 million. A stamp duty rate of 15% can apply to the bulk acquisition of 10 or more residential properties in certain circumstances. Stamp duty is normally paid by the buyer.
VAT may also be payable at the rate of 13.5% on completion of the transaction where there is a direct acquisition of real estate. This is determined on a case-by-case basis as each property has its own VAT history recording previous usage and the VAT status of the seller. A buyer may be entitled to recover VAT, depending on the buyer's VAT status and the purpose for which the property is used.
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.
No VAT is payable on the acquisition of shares.
Where there is an indirect acquisition of real estate in Ireland one must consider whether there are any latent gains or losses attached to the real estate. In the case of latent losses, there are certain rules which restrict capital loss buying which must be considered.
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. However, there is a relief from capital gains tax for real estate purchased from 7 December 2011 to 31 December 2014, provided it is held for a specified period. The original holding period was seven years. There was proportionate relief where the property was held for any period longer than seven years, with the relief being lost in its entirety if the property was sold during the initial seven-year acquisition period.
The requisite holding period has been reduced from seven years to four years. The measure has created a three-year period (ie years 4 to 7) in which the property can be sold and benefit from a full exemption whereas if held longer than seven years, only proportionate relief is available.
In order for the relief to apply, the property must be acquired for a consideration equal to the market value of the property (or if acquired from a relative, not less than 75% of the market value on the date acquired). This exemption applies to all persons regardless of how the real estate is acquired, ie individual or corporate.
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 relief from capital gains tax in respect of real estate purchased up to 31 December 2014 does not extend to the disposal of shares in a company which derives its value or the greater part of its value from Irish real estate.
Last modified 1 May 2025
VAT may be payable on the direct acquisition of commercial/residential real estate. This is determined on a case‑by‑case basis as each property has its own VAT history recording previous usage and the VAT status of the seller. A buyer may be entitled to recover VAT, depending on their VAT status and the purpose for which the property is used.
No VAT should be payable on the purchase of shares in an Irish company, regardless of whether or not it holds property.
Last modified 1 May 2025
Costs include advisors' fees. Each party pays their own advisors' fees.
The incidental costs of acquisition may be deductible when calculating any gain or loss on the disposal of the property. Such fees must be incurred wholly and exclusively for the purpose of the acquisition of the asset, and must fall into one or other of the following categories:
Costs include advisors' fees and compliance expenses (eg for the statutory audit of the company or the completion of accounting and tax returns). Each party pays their own advisors' fees.
The incidental costs of acquisition may be deductible when calculating any gain or loss on the disposal of the property. Such fees must be incurred wholly and exclusively for the purpose of the acquisition of the asset, and must fall into one or other of the following categories:
Last modified 1 May 2025
Rental profits are subject to corporation tax at the rate of 25% where the property is held by an Irish resident company or a non‑Irish resident company carrying on a trade in Ireland through a branch or agency. Individuals are typically subject to income tax on their rental profits based on their marginal rates of tax and universal social charge. In computing rental profits deductions are allowed for:
From 1 January 2019 the deduction available for interest on borrowings used by a landlord to fund the purchase, improvement or repair of a residential property increased from 85% to 100%.
Previously deductions could not be made for expenditure incurred before the first letting of the property. However, from 1 January 2018, a deduction for ‘pre-letting’ expenses of a revenue nature (for example, routine repairs and maintenance costs) is allowable when incurred on residential property which has been vacant for a period of 12 months or more (such expenses incurred before the first letting of the property would not currently be considered deductible). The relief will be subject to a cap of €5,000 per property and will be available for qualifying expenditure incurred up to the end of 2021. Deductions should be possible for expenditure incurred between lettings. Where interest costs are incurred by a company prior to the first letting these may be added to the base cost of the property in calculating a gain or loss on disposal where the costs have been capitalized by the company in its accounts.
Depending on the use to which the property is put and the trade, if any, carried on in the property capital allowances in the form of industrial buildings allowances may be available. An "industrial building or structure" is broadly defined and includes buildings and structures used for a great variety of commercial purposes.
There have been many capital allowances schemes in existence in Ireland over the past 30 years, for example, hotel capital allowance schemes, schemes for the provision of student accommodation, urban renewal relief schemes, rural renewal relief schemes and rented residential accommodation schemes. Most of these schemes have now been abolished or are currently being phased out.
Capital allowances may continue to be available on expenditure incurred on the acquisition of a property on which capital allowances have been claimed where the tax life of the property has not yet expired. A full review of the capital allowances position of a property should be conducted prior to its acquisition.
If the property is let with fixtures and fittings and the landlord bears the burden of the wear and tear of such fixtures and fittings, capital allowances should be available.
Rental profits may be taxed at the rate of 20% where the property is held by a non‑Irish resident company that is not carrying on a trade in Ireland through a branch or agency.
Capital gains tax is payable on the disposal of Irish real estate whether held through a company or by an individual and whether the owner of the property is resident in Ireland or elsewhere. The current rate of capital gains tax is 33%. However, there is a relief from capital gains tax for real estate purchased from 7 December 2011 to 31 December 2014 provided it is held for a specified period. The original holding period was seven years. There was proportionate relief where the property was held for any period longer than seven years, with the relief being lost in its entirety if the property was sold during the initial seven-year acquisition period.
The requisite holding period has been reduced from seven years to four years. The measure has created a three year period (ie years 4 to 7) in which the property can be sold and benefit from a full exemption whereas if held longer than seven years, only proportionate relief is available.
In order for the relief to apply, the property must be acquired for a consideration equal to the market value of the property (or if acquired from a relative, not less than 75% of the market value on the date acquired). This exemption applies to all persons regardless of how the real estate is acquired, ie individual or corporate. The relief does not extend to the disposal of shares in a company which derives its value or the greater part of its value from Irish real estate.
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.
For the purposes of calculating the LPT, property values are organized into market value bands. The lowest band is EUR 0 to EUR 200,000. Higher bands are organized in increments of EUR 62,500 up to EUR 1,750,000 (and over). The tax liability is calculated by applying the tax rate to the midpoint of the band. The rate of LPT is 0.18% for properties up to a market value of EUR 1 million. For example, a property valued at EUR 230,000 falls into the EUR 200,001 to EUR 262,500 band. Therefore, the tax is EUR 315 for a full year. Local authorities have the authority to amend the rate of LPT by up to 15%. The LPT charge for a property’s valuation band may be different to the LPT charge basic rate. This is known as the 'Local Adjustment Factor'.
Residential properties valued over EUR 1.75 million are assessed at their actual market value at a rate of 0.1029% on the first EUR 1.05 million in value and 0.25% on the portion of the value between EUR 1.05 million and EUR 1.75 million, and 0.3% of the portion declared market value above EUR 1.75 million (banding does not apply).
Last modified 1 May 2025
Local authority rates are payable by the occupiers of commercial and industrial property. These are based on property valuations which depend on factors such as location, square footage and the nature of the business. Rates can normally be claimed as a deduction against taxable income.
Local authority rates are payable by the occupiers of commercial and industrial property. These are based on property valuations which depend on factors such as location, square footage and the nature of the business. Rates can normally be claimed as a deduction against taxable income.
Last modified 1 May 2025
Rental income can be generated from letting commercial/residential real estate. In certain circumstances part of the premium received in respect of the grant or assignment of a lease is subject to income tax (the remainder is subject to capital gains tax).
Rental income can be generated from letting commercial/residential real estate. In certain circumstances part of the premium received in respect of the grant or assignment of a lease is subject to corporation tax (the remainder is subject to capital gains tax).
Rental income is taxed at the rate of 25 percent 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.
Last modified 1 May 2025
Rental income is taxable on the basis of when the income is earned, rather than when it is actually received.
Deductions allowed when calculating taxable net rental income include:
Pre-letting expenses, other than property fees before first renting out a property cannot be deducted. Deductions should be possible for expenditure incurred between lettings. Where interest costs are incurred by a company prior to the first letting these may be added to the base cost of the property in calculating a gain or loss on disposal where the costs have been capitalized by the company in its accounts.
From 1 January 2019, the deduction available for interest on borrowings used by a landlord to fund the purchase, improvement or repair of a residential property increased from 85% to 100%.
Depending on the use to which the property is put and the trade, if any, carried on in the property capital allowances in the form of industrial buildings allowances may be available. An "industrial building or structure" is broadly defined and includes buildings and structures used for a great variety of commercial purposes.
There have been many capital allowances schemes in existence in Ireland over the past 30 years, for example, hotel capital allowance schemes, schemes for the provision of student accommodation, urban renewal relief schemes, rural renewal relief schemes and rented residential accommodation schemes. Most of these schemes have now been abolished or are currently being phased out.
Capital allowances may continue to be available on expenditure incurred on the acquisition of a property on which capital allowances have been claimed where the tax life of the property has not yet expired. A full review of the capital allowances position of a property should be conducted prior to its acquisition.
If the property is let with fixtures and fittings and the landlord bears the burden of the wear and tear of such fixtures and fittings, capital allowances should be available.
Where deductible expenses exceed rental income, a rental loss results, which can be offset against net Irish rental profits for the same period. Any residual losses can be carried forward indefinitely and offset against future rental profits.
Where an Irish PE carrying on a trade in Ireland is in receipt of rental income in respect of a property used by, or held by or for, the branch, it will be subject to Irish tax on the net rental profits (ie rental income after the deduction of expenses and rental losses). The current rate of tax for a company is 25%. There may be double-taxation relief if a double-taxation treaty applies.
Depending on the use to which the property is put and the trade, if any, carried on in the property capital allowances in the form of industrial buildings allowances may be available. A full review of the capital allowances position of a property should be conducted prior to its acquisition.
If the property is let with fixtures and fittings and the landlord bears the burden of the wear and tear of such fixtures and fittings, capital allowances should be available.
Rent payments made to a non-resident landlord may be subject to withholding tax at the rate of 25% unless the landlord has appointed an Irish collecting agent.
A non‑resident individual investor is generally subject to Irish income tax on rental income from an Irish source (less deductible expenses) at the standard rate of income tax, currently 20%. A non‑resident corporate investor is generally subject to Irish corporate tax on rental income from an Irish source (less deductible expenses) at the corporate tax rate of 25%. The deductible expenses are the same as those which apply to Irish resident persons, ie:
Double-taxation relief may also be available.
Rent payments made to a non-resident landlord may be subject to withholding tax at the rate of 20% unless the landlord has appointed an Irish collecting agent. A non‑resident investor (whether a company or individual) may incur a liability to capital gains tax, currently at the rate of 33%, if a gain arises on the sale of Irish investment property. However, there is a relief from capital gains tax for real estate purchased from 7 December 2011 to 31 December 2014 provided it is held for a specified period. The original holding period was seven years. There was proportionate relief where the property was held for any period longer than seven years, with the relief being lost in its entirety if the property was sold during the initial seven-year acquisition period.
The requisite holding period has been reduced from seven years to four years. The measure has created a three-year period (ie years 4 to 7) in which the property can be sold and benefit from a full exemption whereas if held longer than seven years, only proportionate relief is available.
In order for the relief to apply, the property must be acquired for a consideration equal to the market value of the property (or if acquired from a relative, not less than 75% of the market value on the date acquired). This exemption applies to all persons regardless of how the real estate is acquired, ie individual or corporate.
The net rental profit of an Irish resident company is subject to Irish corporation tax at the rate of 25%.
The remarks above in relation to capital allowances are also relevant for an indirect investment through a corporate entity.
Interest costs incurred on the acquisition of shares in an Irish property holding company may qualify for relief as a charge where certain conditions are met and anti‑avoidance rules do not apply. These conditions can broadly be summarized as follows:
Last modified 1 May 2025
Once the profits of the PE have been taxed in Ireland, they can be transferred to a foreign investor without further Irish taxation.
Once Irish income tax has been paid the profits can be transferred out of Ireland.
Corporate vehicles must first pay the appropriate taxes on rental profit and capital gains. They can then distribute profits to the shareholders. A distribution of dividends may be subject to Irish Dividend Withholding Tax (DWT), currently at the rate of 25%, although there are numerous exemptions, including dividends paid to:
Last modified 1 May 2025
Local authority rates are payable by the occupiers of commercial and industrial property. These are based on property valuations which depend on factors such as location, square footage and the nature of the business. Rates can normally be claimed as a deduction against taxable income.
Last modified 1 May 2025
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Last modified 1 May 2025
Gains arising on the sale of Irish investment property are generally liable to Irish Capital Gains Tax (CGT), currently at the rate of 33%. This is the case whether or not the seller is resident in Ireland and subject to any relief that may be available under a double-taxation treaty. The taxation of property purchased with the intention of resale or development differs from the taxation of investment property. The tax rate depends on the nature of the property and the tax status of the owner. However, there is a relief from capital gains tax for real estate purchased from 7 December 2011 to 31 December 2014 provided it is held for a specified period. The original holding period was seven years. There was proportionate relief where the property was held for any period longer than seven years, with the relief being lost in its entirety if the property was sold during the initial seven-year acquisition period.
The requisite holding period has been reduced from seven years to four years. The measure has created a three-year period (ie years 4 to 7) in which the property can be sold and benefit from a full exemption whereas if held longer than seven years, only proportionate relief is available.
In order for the relief to apply, the property must be acquired for a consideration equal to the market value of the property (or if acquired from a relative, not less than 75% of the market value on the date acquired). This exemption applies to all persons regardless of how the real estate is acquired, ie individual or corporate.
The incidental costs of acquisition may be deductible when calculating any gain or loss on the disposal of the property. Such fees must be incurred wholly and exclusively for the purpose of the acquisition of the asset, and must fall into one or other of the following categories:
Where proceeds from the sale of a property exceed EUR500,000 (or EUR1,000,000 if the property disposed of is residential property – effective from 1 January 2016), the buyer is obliged to withhold tax of 15% from the gross proceeds. However, withholding tax does not apply where the seller produces a CGT clearance certificate issued by the Irish tax authorities before the sale. Some sellers, for example, a non‑resident seller, may not be entitled to a clearance certificate. Tax withheld by the buyer can normally be offset against the Irish CGT payable by the seller, and any excess is refunded to the seller following the submission of a CGT return to the tax authorities.
Gains arising on the sale of Irish investment property are generally liable to Irish Capital Gains Tax (CGT), currently at the rate of 33%. This is the case whether or not the seller is resident in Ireland and subject to any relief that may be available under a double taxation treaty. The taxation of property purchased with the intention of resale or development differs from the taxation of investment property. The tax rate depends on the nature of the property and the tax status of the owner. However, there is a relief from capital gains tax for real estate purchased from 7 December 2011 to 31 December 2014 provided it is held for a specified period. The original holding period was seven years. There was proportionate relief where the property was held for any period longer than seven years, with the relief being lost in its entirety if the property was sold during the initial seven-year acquisition period.
The requisite holding period has been reduced from seven years to four years. The measure has created a three-year period (ie years 4 to 7) in which the property can be sold and benefit from a full exemption whereas if held longer than seven years, only proportionate relief is available.
In order for the relief to apply, the property must be acquired for a consideration equal to the market value of the property (or if acquired from a relative, not less than 75% of the market value on the date acquired). This exemption applies to all persons regardless of how the real estate is acquired, ie individual or corporate.
The incidental costs of acquisition as set out above in relation to investment without a permanent establishment may be deductible when calculating any gain or loss on the disposal of the property.
Where proceeds from the sale of a property exceed EUR500,000 (or EUR1,000,000 if the property disposed of is residential property – effective from 1 January 2016), the buyer is obliged to withhold tax of 15% from the gross proceeds. However, withholding tax does not apply where the seller produces a CGT clearance certificate issued by the Irish tax authorities before the sale. Some sellers, for example a non‑resident seller, may not be entitled to a clearance certificate. Tax withheld by the buyer can normally be offset against the Irish CGT payable by the seller, and any excess is refunded to the seller following the submission of a CGT return to the tax authorities.
Gains arising on the sale of Irish investment property are generally liable to Irish Capital Gains Tax (CGT), or, if held through an Irish tax resident company, Irish corporation tax, both currently at the rate of 33%. This is the case whether or not the seller is resident in Ireland and subject to any relief that may be available under a double-taxation treaty. The taxation of property purchased with the intention of resale or development differs from the taxation of investment property. The tax rate depends on the nature of the property and the tax status of the owner. However, there is a relief from capital gains tax for real estate purchased from 7 December 2011 to 31 December 2014 provided it is held for a specified period. The original holding period was seven years. There was proportionate relief where the property was held for any period longer than seven years with the relief being lost in its entirety if the property was sold during the initial seven year acquisition period.
The requisite holding period has been reduced from 7 years to 4 years. The measure has created a three year period (i.e. years 4 to 7) in which the property can be sold and benefit from a full exemption whereas if held longer than 7 years, only proportionate relief is available.
In order for the relief to apply, the property must be acquired for a consideration equal to the market value of the property (or if acquired from a relative, not less than 75% of the market value on the date acquired). This exemption applies to all persons regardless of how the real estate is acquired, ie individual or corporate.
The incidental costs of acquisition as set out above in relation to investment without a permanent establishment may be deductible when calculating any gain or loss on the disposal of the property.
Where the proceeds from the sale of a property exceed EUR500,000 (or EUR1,000,000 if the property disposed of is residential property – effective from 1 January 2016), the buyer is obliged to withhold tax of 15% from the gross proceeds. However, withholding tax does not apply where the seller produces a CGT clearance certificate issued by the Irish tax authorities before the sale. A clearance certificate is automatically available to a seller who is tax resident in Ireland. Some sellers, for example, a non‑resident seller, may not be entitled to a clearance certificate. Tax withheld by the buyer can normally be offset against the Irish CGT payable by the seller, and any excess is refunded to the seller following the submission of a CGT return to the tax authorities.
The sale of shares in an Irish or non‑Irish property holding company which derive their value or the greater part of their value from Irish situate land and buildings is subject to Irish CGT at a current rate of 33% irrespective of the residence of the vendor. The relief from capital gains tax referred to above does not extend to the disposal of shares in a company which derives its value or the greater part of its value from Irish real estate.
Last modified 1 May 2025
The seller will need to pay legal fees, as well as fees of any agents employed to market and sell the property and carry out valuations.
Last modified 1 May 2025
How can investment in real estate by an individual/organization/company be set up?
There are a number of options, including:
Last modified 1 May 2025