Philip Lee LLP
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
There are currently no restrictions on who may own and occupy real estate in Ireland, albeit certain “vetting” procedures exist for “critical infrastructure” assets acquired by non-EU entities, including renewable energy assets such as solar and wind.
We anticipate there to be an increase in the current 10% rate of stamp duty (being a tax payable on the transfer of property) or alternative measure to further discourage “bulk”acquisition of residential developments by a single entity / entity with ultimate common ownership.rate will increase further.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
Ireland is an outward-looking open economy which remains heavily reliant on investment by foreign companies and those entities’ lenders.
Save for restrictions which would apply in limited instances where lending is intended to be syndicated with State agency funding, there are no restrictions on foreign entities lending into this jurisdiction, albeit additional filing requirements both in the Companies Registration Office and Irish Land Registry are required where funding emanates from an external jurisdiction.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
The primary tax cost applicable to buying real estate is Stamp Duty, being a fixed tax equating to 1%, 7.5% or 10% of an asset’s market value. Where a company is acquired such that, its primary business is property-related, the shares of that company will be subject to stamp duty at a rate of 7.5%.
Whereas the “old” regime permitted a transfer of such shares at a lesser rate, this perceived loophole closed given the number of established special purpose dealing exclusively with real estate.
The remaining transaction fees and costs are typical to those seen in other EU jurisdictions.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
For CRE, the range of taxes align with those seen in other EU jurisdictions. Local Authority Taxes (known as “Commercial Rates” or “Business Improvement District Levies”), levied to meet the running costs incurred for providing community services, are chargeable on the occupier and not the owner of CRE, save where a commercial premises is vacant.
On 1 March 2025, the “Residential Zoned Land Tax” was introduced and is chargeable (at 3% of value) on undeveloped lands that are zoned and suitably served for residential development. Surcharges, ranging from 10%-30% of the annual RZLT liability, apply to late RZLT returns.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
Certain corporate structures (Section 110s and REITs) can be incorporated which permit structured investment in real estate and a tax favorable repatriation of profits (rental incomes) yielded from activities carried out in this jurisdiction.
Section 110 entities can benefit from tax-deductible funding costs and any related expenses. Similarly, they can also benefit from Ireland's expansive network of tax treaties and be exempt from tax withholding on interest and dividend payments.
How is the ownership of Real Estate evidenced in your jurisdiction?
Two systems of title registration exist, each operated under the umbrella of State agency Taitle Éireann. Both are perfectly acceptable forms of “good” title.
The first system (which relates to most titles in Ireland) is known as “unregistered” title and is recorded in the Registry of Deeds. The “RoD” operates as a title repository and title investigation is required to establish a seller’s legal title.
The second system is “registered” title and recorded in the Land Registry. This system operates as a register and constitutes State guaranteed evidence of legal ownership.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
Where title is “unregistered” the entity which owns real estate is not always apparent, the Registry of Deeds recording the named parties to a deed only and not, as is the case with Land Registry titles, investigating a party’s entitlement to deal with the asset to which the deed relates.
As Land Registry titles are State guaranteed the Registrar of Titles is entitled to request such details of ownership as it may direct, with potential for those details to appear in the Register as a matter of public record.