Destination overview Ireland

Population 5.1 million

Area 84,421 km sq

Timezone GMT

Language English and Irish (Gaelic)

Stunning natural beauty, engaging culture, strong economy, developed infrastructure and connectivity, are just a few of Ireland’s attractions. It is just across the water from Wales and remains in the EU but thanks to the Common Travel Area (CTA) agreement freedom of movement remains between Ireland and the UK. This includes the right to reside.

The economy continues to grow, with some international company headquarters here, mainly around finance, pharmaceuticals and technology. Tourism plays a huge role across the country too.

The opportunity for capital growth remains strong in the medium to long term. Property prices in Ireland have increased over recent years, especially around Dublin. However, there are still some property at attractive prices if you are open to location.

€5.5 billion was invested in real estate in Ireland during 2021, with 41% of this being residential. It has been one of the best places in Europe to invest in Buy to Let, with rental yield on a one bedroom flat in Dublin typically 7-10%. Rental demand continues to rise. It is worth noting there are 53 Local Electorate Areas with Rent Pressure Zones (RPZ) keeping annual rent increases in line with inflation, or 2% (whichever is less). There are categories excluding regulations including new property, or property let for the first time in two years, or property that has undergone significant alteration. Check rules and regulations with your estate agent.

With any investment, tax is a consideration. Allow up to 8% on top of asking price when buying a property. There is Stamp Duty ranging from 1-7.5% and there is VAT applicable in some cases, such as new property purchases. There are registration fees on purchase and an annual Property Tax (LPT) on residential property. The standard rate of Capital Gains Tax is 33%. There is inheritance tax (CAT).

Non-residents will be taxed on income sourced in Ireland. The standard rates is 20% with some allowances. Irish tax resident landlords need to pay PRSI (4% of income profit) and USC (2-10%)too. There are a number of expenses landlords can claim against their total gains, including management fees, insurance premiums, utilities and other service charges, RTB (Residential Tenancies Board) registration fees, maintenance costs, capital allowances, wear & tear and advertising expenses. RTB registered landlords can claim the interest on mortgage payment against income.

Always consult with a professional tax advisor. Your estate agent may offer letting & property management services, in which case they can provide quotes.

If you are planning to buy a property in Ireland and use if for short-term lets, instead of your primary place of residence, you may need to apply for a change of use, getting planning permission from the local authority. Your estate agent can advise.

Co. Wicklow, Co. Cork and Co. Dublin and the most popular counties for expats, although there are others. The capital, Dublin is the central spot, but also the most expensive in terms of real estate. The Irish times named Derry, Galway City, Waterford city, Cabra in Dublin 7 and Malahide, Co. Dublin as the top places to live in Ireland 2021.

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