Local resident
Investing Profits
Gains from the sale of investment property in Ireland are subject to a 33 percent Capital Gains Tax (CGT) for private individuals. Depending on the specifics of the case, various CGT reliefs and exclusions may be applied.
Income Tax Withheld
If the acquisition price of an Irish property exceeds €500,000 for commercial property or €1,000,000 for residential property, the buyer must withhold 15% of the purchase price unless the seller applies for a CG50 pre-clearance.
Sales tax / value-added tax
After July 1, 2008, a 13.5% VAT will be charged on the sale of ‘new’ freehold properties. Unless the seller and the buyer jointly want to tax the transaction, the sale of “old” property does not incur VAT. Examples of ‘new’ real estate are:
The initial supply of a finished building within the first five years after it is finished.
- Any additional distribution of a newly built property within the first five years after its completion, unless it has been inhabited for at least two of those years.
- The process through which an older building is transformed into a modern structure.
Obtaining specialist guidance in regards to all supplies pertaining to real estate in Ireland is highly recommended.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. Typically, you cannot deduct a loss on a capital investment. Only gains and losses on development land are allowed to cancel each other out.
Non Domiciled Residents
Investing Profits
Capital gains incurred by non-residents upon the sale of certain Irish assets are subject to a tax rate of 33 percent.
Potential Taxation
For the purposes of the Capital Gains Tax Act, real estate located in Ireland is considered to be a Specified Irish Asset. Any profit made from selling certain types of Irish property by a person who does not live in the country is subject to a capital gains tax of 33 percent.
Sales tax / value-added tax
Individuals are subject to the same regulations as locals.
Losses
Individuals are subject to the same regulations as locals.
Home-based business
Investing Profits
For corporations, the current capital gains tax rate for taxable gains is 33%.
Exemptions
Certain deals between affiliated businesses are given preferential status by Irish tax law. The relief is only available to companies who are 75% effectively related to each other. Companies can only qualify for the exemption if they are based in an EU or EEA nation with which Ireland has a double taxation agreement. The acquisition or sale of real estate in Ireland qualifies for the discount. The relief includes the no-gain, no-loss treatment of eligible purchases or transfers between such related firms.
Sales tax / value-added tax
After July 1, 2008, a 13.5% VAT will be charged on the sale of ‘new’ freehold properties. Unless the seller and the buyer jointly want to tax the transaction, the sale of “old” property does not incur VAT. Examples of ‘new’ real estate are:
- The initial supply of a finished building within the first five years after it is finished.
- Any additional distribution of a newly built property within the first five years after its completion, unless it has been inhabited for at least two of those years.
- The process through which an older building is transformed into a modern structure
Obtaining specialist guidance in regards to all supplies pertaining to real estate in Ireland is highly recommended.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer, and it was covered in detail in Section 2 “Purchasing Real Estate” above.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. You can’t reverse a capital loss. Only gains and losses on development land are allowed to cancel each other out.
Non-domiciled business
Investing Profits
Capital gains tax at the rate of 33% applies to chargeable gains realized by non-resident firms upon the sale of certain assets located in Ireland.
Potential Taxation
For the purposes of the Capital Gains Tax in Ireland, real estate located in Ireland is considered to be a Specified Irish Asset. Any profit made by a non-resident firm when selling certain types of property located in Ireland is liable to a capital gains tax of 33 percent.
Sales tax / value-added tax
The regulations are the same as those for domestic corporations.
Losses
The regulations are the same as those for domestic corporations.
Home-based residents
Investing Profits
The Capital Gains Tax (CGT) rate for the sale of shares in a corporation that holds investment property is 33%. Several CGT reliefs and exclusions are available, and their applicability will depend on the specifics of each case.
Sales/Use Tax/VAT
VAT is not charged on the selling of shares.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer, and it was covered in detail in Section 2 “Purchasing Real Estate” above.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. Typically, you cannot deduct a loss on a capital investment.
Person who does not make their primary residence in the United States
Investing Profits
Specified Irish assets, such as unquoted shares in a firm whose value is derived in large part from real estate located in Ireland, are liable to capital gains tax for non-resident people when they are sold.
Any profit made by a non-resident on the sale of certain types of property located in Ireland is subject to a capital gains tax of 33 percent.
Sales/Use Tax/VAT
Individuals are subject to the same regulations as locals.
Losses
Individuals are subject to the same regulations as locals.
Home-based business
Investing Profits
Common practice requires corporations to fork up capital gains tax when selling stock. The current rate of capital gains tax is 33%.
Exemptions
Certain capital gains from the sale of a company’s shares in an indirect subsidiary are not subject to taxation under Irish law.
For a gain to qualify for exemption, certain requirements must be completed.
To begin, there must be a certain level of ownership between the investor and investee companies.
For at least 12 consecutive months in the three years preceding to the sale, the investor must have held at least a 5% stake in the investee firm.
Second, the investee firm must engage in commercial activity, or the business of the investor firm, the investee firm, and the ‘5 per cent’ investee firms must consist fully or mostly of commercial activities.
Finally, the investee firm must, at the time of the disposal, be domiciled in an EU Member State, a territory with which Ireland has an active double tax treaty, or a territory with which Ireland has signed a double tax treaty but has not yet entered into effect.
The relief will be restricted in its applicability to corporations owning Irish real estate since the exemption does not apply to shares that derive the majority of their value from property in the State.
Sales/Use Tax/VAT
VAT is not charged on the selling of shares.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer, and it was covered in detail in Section 2 “Purchasing Real Estate” above.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. You can’t reverse a capital loss.
Non-domiciled business
Investing Profits
Unquoted shares in a corporation whose value is derived in large part from real estate in Ireland are considered part of the “specified Irish Assets” that are liable to capital gains tax when sold by a non-resident company.
Any profit made by a non-resident firm when selling certain types of property located in Ireland is liable to a capital gains tax of 33 percent.
Sales tax / value-added tax
The regulations are the same as those for domestic corporations.
Losses
The regulations are the same as those for domestic corporations.
Internal company sale (Irish property to an Irish business)
Investing Profits
For corporations, the current capital gains tax rate for taxable gains is 33%.
Exemptions
Certain deals between affiliated businesses are given preferential status by Irish tax law. The relief is only available to companies who are 75% effectively related to each other. Companies can only qualify for the exemption if they are based in an EU or EEA nation with which Ireland has a double taxation agreement. The acquisition or sale of real estate in Ireland qualifies for the discount. The relief includes the no-gain, no-loss treatment of eligible purchases or transfers between such related firms.
Sales tax / value-added tax
After July 1, 2008, a 13.5% VAT will be charged on the sale of ‘new’ freehold properties. Unless the seller and the buyer jointly want to tax the transaction, the sale of “old” property does not incur VAT. Examples of ‘new’ real estate are:
The initial supply of a finished building within the first five years after it is finished.
- Any additional distribution of a newly built property within the first five years after its completion, unless it has been inhabited for at least two of those years.
- The process through which an older building is transformed into a modern structure.
Obtaining specialist guidance in regards to all supplies pertaining to real estate in Ireland is highly recommended.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer, and it was covered in detail in Section 2 “Purchasing Real Estate” above.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. You can’t reverse a capital loss. Only gains and losses on development land are allowed to cancel each other out.
Transfer of Irish property to an Irish corporation through an intermediary.
Investing Profits
Common practice requires corporations to fork up capital gains tax when selling stock. The current rate of capital gains tax is 33%.
Exemptions
Certain capital gains from the sale of a company’s shares in an indirect subsidiary are not subject to taxation under Irish law.
For a gain to qualify for exemption, certain requirements must be completed.
To begin, there must be a certain level of ownership between the investor and investee companies.
For at least 12 consecutive months in the three years preceding to the sale, the investor must have held at least a 5% stake in the investee firm.
Second, the investee firm must engage in commercial activity, or the business of the investor firm, the investee firm, and the ‘5 per cent’ investee firms must consist fully or mostly of commercial activities.
Finally, the investee firm must, at the time of the disposal, be domiciled in an EU Member State, a territory with which Ireland has an active double tax treaty, or a territory with which Ireland has signed a double tax treaty but has not yet entered into effect.
The relief will be restricted in its applicability to corporations owning Irish real estate since the exemption does not apply to shares that derive the majority of their value from property in the State.
Sales/Use Tax/VAT
VAT is not charged on the selling of shares.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer, and it was covered in detail in Section 2 “Purchasing Real Estate” above.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. You can’t reverse a capital loss.
Internal corporate sale (Irish property to a foreign buyer).
Investing Profits
For corporations, the current capital gains tax rate for taxable gains is 33%.
Exemptions
Certain deals between affiliated businesses are given preferential status by Irish tax law. The relief is only available to companies who are 75% effectively related to each other. Companies can only qualify for the exemption if they are based in an EU or EEA nation with which Ireland has a double taxation agreement. The acquisition or sale of real estate in Ireland qualifies for the discount. The relief includes the no-gain, no-loss treatment of eligible purchases or transfers between such related firms.
sales tax / value-added tax
After July 1, 2008, a 13.5% VAT will be charged on the sale of ‘new’ freehold properties. Unless the seller and the buyer jointly want to tax the transaction, the sale of “old” property does not incur VAT. Examples of ‘new’ real estate are:
The initial supply of a finished building within the first five years after it is finished.
- Any additional distribution of a newly built property within the first five years after its completion, unless it has been inhabited for at least two of those years.
- The process through which an older building is transformed into a modern structure.
Obtaining specialist guidance in regard to all supplies pertaining to real estate in Ireland is highly recommended.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer, and it was covered in detail in Section 2 “Purchasing Real Estate” above.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. You can’t reverse a capital loss. Only gains and losses on development land are allowed to cancel each other out.
Intra-business transfer (Irish real estate to a foreign corporation) that occurs indirectly.
Investing Profits
Common practice requires corporations to fork up capital gains tax when selling stock. The current rate of capital gains tax is 33%.
Exemptions
Certain capital gains from the sale of a company’s shares in an indirect subsidiary are not subject to taxation under Irish law.
For a gain to qualify for exemption, certain requirements must be completed.
To begin, there must be a certain level of ownership between the investor and investee companies.
For at least 12 consecutive months in the three years preceding to the sale, the investor must have held at least a 5% stake in the investee firm.
Second, the investee firm must engage in commercial activity, or the business of the investor firm, the investee firm, and the ‘5 per cent’ investee firms must consist fully or mostly of commercial activities.
Finally, the investee firm must, at the time of the disposal, be domiciled in an EU Member State, a territory with which Ireland has an active double tax treaty, or a territory with which Ireland has signed a double tax treaty but has not yet entered into effect.
As a result, the applicability of the relief in regard to firms owning Irish real estate is limited to shares that do not derive the majority of their value from property in the State.
Sales/Use Tax/VAT
VAT is not charged on the selling of shares.
Stamp duty is a transfer tax levied on the purchase of Irish real estate. This is the responsibility of the buyer.
Losses
Gains that are not subject to taxation in one year might be offset by losses incurred in the same year. Any losses that aren’t used up can be carried over forever. You can’t reverse a capital loss.
