Are you thinking of moving to Ireland in the future? With its stunning scenery, vibrant cities, and affordable properties, it’s not hard to understand why so many people choose to move to Ireland.
How easy is it to purchase property in Ireland for a foreigner? We’ll show you everything you need to know. These include the prices of property in Ireland, where to live and how to obtain a mortgage. So, let’s get started.
- Foreign nationals can buy property in Ireland without restrictions. This means that property can be purchased in Ireland by both EU/ EEA or non-EU/ non EEA citizens.
- The owner of a residential property in Ireland is not entitled to the right of residence. The rights to reside and/or the right to stay in Ireland are separate from property ownership and depend on each person’s individual circumstances. Please visit the Irish National and Immigration Service for more information.
- Likewise, the possession of commercial property in Ireland does not entitle a non EEA national to run a business from that property. Permission must be obtained from the Minister for Justice Equality and Law Reform. EU/EEA nationals can also operate a business in Ireland and remain there without restrictions under the general principles of EU Law. Once a company has one director who is Irish, it may run a business from that property. However, each person’s circumstances will determine how each director or employee is allowed to reside in Ireland.
- Important to remember that a tenant who is not a resident of Ireland is required by current tax legislation (section 104 Taxes ConsolidationAct 1997) to withhold 20% and pay the Revenue the same unless the non-resident landlord has designated a ‘Collection agent’ to assess the tax due on rent from the rental property. An estate agent, solicitor or accountant is a collection agent. However, any resident of Ireland could also be one. A tenant can pay the entire rent to an Irish resident agent once a collection agent is appointed. It is easy to appoint a collection agent. All you need to do is complete an Income Tax Registration form for Collection Agents, and submit it to Revenue. First, the Landlord must register his/her income tax number or PPS number. The Collection Agent will need to apply to Department of Social Protection to obtain a separate Personal Public Service (or tax number) which will be linked with the landlord’s Irish tax number. Revenue will acknowledge a Collection Agent and the tenant is allowed to pay rent without tax deduction.
- A purchaser must pay stamp duty of 6% on commercial property transactions. A residential property transaction will attract stamp duty at 1% of its market value, and at 2% for any value above this amount. Both cases require that stamp duty be paid within 30 days after the transaction is completed. A PPS (or tax number) is required in order to file a stamped duty return. This can take up to 8 weeks from the Department of Social Protection. If a purchaser doesn’t have one, it could delay the transaction. It is unlikely that individuals or companies from Ireland will have a Tax Number or PPS. This delay could be caused by the fact that they have not been residents or have ever conducted business in Ireland.
- In Ireland, conveyancing can be divided into three stages. There is the negotiation stage (in which solicitors are not usually involved), pre-contract stage where sole practitioners are involved; and final (where solicitors may be involved). Negotiation usually involves private individuals, their estate agents, or representatives, negotiating the sale price and “heads-of terms”. The vast majority of legal work in Ireland is done by solicitors at the “pre-contract phase”. This allows both parties to sign the contract quickly. It will take a different transaction depending on whether the buyer is purchasing with cash only or with the benefit of a loan. If all goes well, the conveyancing transaction should be completed within four weeks after exchange of contracts.
- A “local property tax” is an annual charge that can be up to 0.18% of the residential property’s market value in Ireland, up to EUR1m. Additionally, 0.23% of the balance of the MV above EUR1m must also be paid to Revenue each year. This is something prospective investors should consider before purchasing a property to rent.
- Commercial property is subject to rates that are charged by the local authority in the area where it is located. The property’s size and other factors will determine the amount due.
- If the property is residential or commercial and it is within a serviced estate, service charges might be applicable to the management company.
- Ireland has signed double taxation agreements that cover 73 countries. This generally means that non-resident landlords pay no more tax than they would in the country where they are resident.