Ireland: Overview
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Price/GDP per Cap
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Price Change 1 yr
- Price Change 5 yrs
- Price Change 10 yrs
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
- Taxes on Residents
Irish Property Crashes
The Irish property crash is worsening. Irish house prices have fallen by 9.5%, or 13.6% in inflation-adjusted terms, over the 12 months to end-May 2008. Average house prices have fallen by €35,902 since the peak in January 2007, from €311.078 to €275,176.
Rents are also suffering a downturn. The stock of rental properties available nationally has increased from over 5,000 in May 2007, to almost 12,000 in May 2008, according to Daft.ie, largely because developers are beginning to despair of selling.
Irish GDP growth is now negative, due to the downturn. In late June, the Economics and Social Research Institute forecast negative GDP growth in 2008 at -0.4%, down on 5.3% growth in 2007. In addition, worsening terms of trade mean real incomes will fall -2.6%.
The European Central Bank is widely expected to raise interest rates soon, having declared itself to be in a “heightened state of alertness.”
In summary the picture is not rosy.
There are no restrictions on foreigners buying property.
RENTAL YIELDS
Last Updated: Jul 07, 2008
Dublin is expensive
Dublin apartments sell for around €7,190 per sq. m. Houses in Dublin are more expensive at €10,076 per sq. m, on the average.
There is not enough information to produce yields figures in Dublin.
TAXES AND COSTS
Last Updated: Nov 04, 2008
Taxes on rental income and capital gains are moderate
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 10.1% | 11.5% | 13.9% |
| Click here to see a worked example | |||
Source:![]() |
Disclaimer | ||
Rental Income: Gross rental income is taxed at 20%, withheld by the tenant. The taxpayer may file a return and claim relief for expenses related to his property.
Capital Gains: Capital gains are taxed at 20%. Acquisition costs, incidental expenses, and improvement costs are deductible from the gross selling price.
Inheritance: Inheritance tax is imposed at a flat rate of 20%, with certain non-taxable amounts deductible before the tax is levied.
Residents: Residents are taxed on their worldwide income. Numerous tax credits and deductions are available to residents; of which the actual values depend on the taxpayer’s personal circumstances.
BUYING GUIDE
Last Updated: Mar 27, 2007
Buying costs are moderate in Ireland
Round-trip transaction costs are around 6.8% of the property price. This can go up to 13.6% because stamp duty is computed at a progressive rate based on the purchase price of the property. Properties that cost more than ?630,000 have the highest stamp duty, at 9%.
LANDLORD AND TENANT
Last Updated: Jun 06, 2006
Strong but fair tenant protection in Ireland
Ireland has strong tenant protection laws.
Rents. The parties are free to negotiate rents, but the amount must not exceed the open market rate. The rent may be reviewed and can only be adjusted once a year. Rent disputes go to the Private Residential Tenancy Board (PRTB).
Tenure Security. Security of tenure is effective for four years; during the first six months, the landlord can terminate the leasing contract without specifying grounds but once a tenancy has lasted six months, the landlord can only terminate the tenancy for the next 3 1/2 years citing just causes.
ECONOMIC GROWTH
Last Updated: Jul 07, 2008
Economic growth has weakened
GDP Growth in 2007 was 5.3% after 5.7% growth in 2006 . Growth is forecast to slow to -0.4 % in 2008. However, this slowdown is expected to be temporary.
Strong economic growth has been the primary factor behind the strong demand for housing. But another factor is migration, given that Ireland allows citizens from EU new member states to access its labor market. Migration flows have recently abated, due largely to the building downturn.
Current economic circumstances will be a challenge to Ireland’s new leadership. In May 2008 Brian Cowen was installed as the new Taoiseach (Prime Minister), and Brian Lenihan as the new Minister of Finance, following controversy over Bertie Ahern’s financial affairs. They will need to decide how to deal with the fact that Ireland’s rapidly slowing growth means that the country’s budget deficit will soon be testing the limits of the EU’s Stability and Growth Pact.
RESIDENTIAL PROPERTY AROUND THE WORLD
Asia & Pacific
Looming housing slump in China
America & Caribbean
The great U.S. housing market crash
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| RESIDENTIAL PROPERTY FACTS | |
| Price (sq.m): €6,980 For a 75 sq. m. property, usually an apartment. | Rental Yield: n.a. |
| Rent/month: n.a. | Income Tax: 10.05% Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income. |
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Roundtrip Cost:
7.0%
The total cost of buying and then reselling an apartment. Includes: * all transaction taxes and charges: * lawyers' and notaries' fees * agents' fees Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000. |
Cap Gains Tax: 18.6% Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation. |
| Landlord & Tenant Law: Pro-Tenant Rating is based on a detailed study of each country’s law and practice. | |
MAY 2009
- End of the road - The Guardian
- What Dublin buyers are really paying - Irish Times
MARCH 2009
JANUARY 2009
- Crunched - for Iceland read Ireland? - The Guardian
- Irish property tycoon commits suicide - Times Online
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