{{ languageVal }}
  • English
 

Industry Updates

Irish Budget 2013: Property Taxation

06 Dec 2012

Important measures for international investors in Ireland and investment managers with Irish investment funds and SPVs

On Wednesday 5 December 2012, the Irish Minister for Finance presented Budget 2013, the Irish government's fiscal programme of measures for the coming year, against an improving but still challenging economic backdrop.

This update summarises the relevant budget measures for international investors in Ireland, domestic companies and banks and multinational corporations with operations in Ireland and investment managers and arrangers with Irish investment funds and capital markets SPVs.

Local Property Tax

Delivering on its long-standing commitment, the government has introduced a residential property tax. Set at a rate of 0.18% on the market value of the home, the local property tax will come into effect from July 2013. A higher rate of 0.25% or so-called "mansion tax" will be charged on any portion of value of the property above €1 million.

The tax is payable on a self-assessment basis by the owner (rather than the occupier) of the property. This may be material for those international investors acquiring portfolios of Irish residential property as it will represent an additional cost of ownership. From 2015, local government authorities will have the power to vary the rates by 15% above or below the central national rates.

Commercial Property

Capital Gains Tax ("CGT") will increase from 30% to 33%, however, the capital gains tax relief announced in Budget 2012 means that, subject to satisfying certain conditions, property bought between now and the end of 2013 will be relieved from CGT if held for at least seven years for that period.

Related Services

Legal Services

Access to market leading legal advice across a wide range of industries and sectors is paramount to the success of businesses seeking international expertise with local support. The Maples Group's legal services teams are globally coordinated, with consistent systems, policies and procedures across all offices, and connected by a common goal: to deliver the highest quality advice and solutions to our clients. Offering an extensive range of legal services, we advise financial, institutional, business and private clients on the laws of the British Virgin Islands, the Cayman Islands, Ireland, Jersey and Luxembourg, delivering time zone convenience and accessibility from these and other leading key international financial centres. Through constructive dialogue and engagement with governments, regulators and industry associations, we have helped shape financial industry innovation and regulation in many of the jurisdictions in which we operate.

Tax

Our market leading Tax team is at the forefront of innovation in developing new structures and strategies for international and Irish clients on cross-border tax matters.