Ireland: Overview

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.

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TAXES AND COSTS

Last Updated: Nov 04, 2008

Taxes on rental income and capital gains are moderate

Effective Tax Rate on Rental Income
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.

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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%.

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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.

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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.