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Jun 19, 2017

Taxes on rental income and capital gains are moderate


INDIVIDUAL TAXATION

Nonresidents are taxed on their income from Irish sources. Married couples may elect to be taxed separately or jointly.

The tax year in Ireland had been aligned to the calendar year as of January 2002.

INCOME TAX

Ireland properties for sale

Nonresidents are liable to pay taxes on their Irish-sourced income. Taxable income is generally an aggregate of all kinds of income.

The rates that apply to residents may not apply to nonresidents, unless all of the taxpayer’s income is subject to Irish income tax. Allowances, deductions and credits available to residents are not available to nonresidents unless certain conditions are met.

RENTAL INCOME
Rental income is taxed at 20%, withheld by the tenant. The taxpayer has the option to file a return and claim relief for income-generating expenses. Allowable deductions include ground rent, rates, maintenance costs, general repairs, insurance, management fees, service charges, advertising, accounting fees, depreciation (wear and tear), building expenditures, and interest.

Stamp Duty on Property Leases

Stamp duty rates on property leases range from 1% to 12%, which is levied on the average annual rent reserved by lease. The applicable rate depends on the length of the lease.

STAMP DUTY ON PROPERTY LEASE

LEASE PERIOD
RATE
Up to 35 years or indefinite 1% of average annual rent
36 years to 100 years 6% of average annual rent
Over 100 years 12% of average annual rent
Source: Global Property Guide

CAPITAL GAINS
Nonresidents are liable to pay capital gains tax for gains realized from the sale of real estate property in Ireland. Capital gains tax is imposed at a flat rate of 33%, effective as of 06 December 2012.. Taxable capital gains are generally computed as selling price less acquisition costs, adjusted for inflation, and improvement costs.

Nonresidents earning capital gains exceeding €500,000 from the sale of Irish property are liable to pay withholding tax at the rate of 15%, which is levied on the selling price/fair market value of the property. This tax is then credited against the nonresident’s capital gains tax liability.

Stamp Duty on Sales of Residential Properties

Stamp duties are levied on sales of residential properties at progressive rates.

STAMP DUTY ON SALES OF RESIDENTIAL PROPERTIES

TAX BASE, €
TAX RATE
Up to €1 million
1%
Over €1 million
2%
Source: Global Property Guide

PROPERTY TAXATION

Local Property Tax (LPT)

Local property tax is levied at different rates, depending on the value of the property.

For properties that are valued at least €1,000,000, local property tax is levied at a flat rate of 0.18% on the first €1,000,000, and at a flat rate of 0.25% on the property value exceeding €1,000,000.

LOCAL PROPERTY TAX FOR PROPERTIES WORTH AT LEAST €1,000,000

PEROPERTY VALUE , €
RATE
Up to €1,000,000
0.18%
Over €1,000,000
0.25% on all value over €1,000,000
Source: Global Property Guide

For properties that are valued €50,000 up to €1,000,000, a different local property tax rate system applies.

CORPORATE TAXATION

INCOME TAX

Income earned by companies is subject to corporate income tax at varying rates depending on income classification: 12.5% on trading income and 25% on non-trading income.

CAPITAL GAINS TAX

Capital gains tax earned by companies is subject to capital gains tax at 33%.

    





Comments

#1 MR COLLINS GREG | August 06, 2010

hi tell me more about your service ok

#2 DES MASON | March 07, 2013

Only 75% of interest is allowble in Irl(on morgage)
There are annual rates of 0.18% of property value as of July 1 2013. These are payable by the landlord. There is also a tenant registration tax of 90 euro per tenancy.

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