The good news for foreigners interested in purchasing property in Ireland is that you need not be Irish to do so. This implies that there shouldn’t be any problems for international buyers.
The real estate market in Ireland looks to be thriving despite the recent coronavirus pandemic. But, post pandemic, home prices increased by 8.44%. With buyer interest at an all-time high, the real estate market remains in the hands of sellers. Competition among purchasers may increase if demand for real estate continues to outstrip supply.
Invest in Irish real estate
As the United Kingdom has now left the EU, a new group of British purchasers is interested in purchasing real estate in Ireland in order to relocate to the EU or just to remain inside it.
Property ownership in Ireland is restricted to Irish nationals. Property in Ireland, both residential and commercial, is available to British buyers. British nationals can stay in Ireland after Brexit5 thanks to the Common Travel Area between the UK and Ireland.
Property in Ireland may become more costly for British purchasers. Reason being, since before the vote, the pound’s value versus the euro has dropped by around 15%
Here are ten details concerning potential Irish home buyers who are not Irish citizens.
Is it possible for me to buy a house in Ireland?
The ‘Golden Visa Scheme’ in the European Union is available in Ireland, allowing non-EU citizens to receive residency cards in exchange for property investments.
However, these prerequisites are quite stringent. It’s not as easy as buying a house and filling out a visa application. At least two million euros must be invested over three years in a real estate investment trust trading on the Irish stock exchange.
How much do various homes in Ireland typically cost?
Ireland’s real estate market is highly dynamic, with values varying widely from one region to another and from a bustling metropolis like Dublin to a quieter rural community.
However, Irish real estate is typically more cheap than British real estate. The average cost of a city centre flat in the United Kingdom is EUR5,098 ($PS4,247)7, whereas in Ireland it is just EUR3,870 (£3,224).
This summary should give you a general sense of how far your money in Ireland will go. The report details the national average property price in Ireland’s most popular real estate markets.
Is residency requirement for purchasing property in Ireland?
You can buy real estate in Ireland even if you don’t live there. Foreign nationals are not prohibited from acquiring either residential or commercial property in the state. You must have a PPS Number and work with an Irish property attorney (lawyer) in order to buy real estate in Ireland.
If you are not an Irish resident but would like to buy property in Ireland, you should be aware of the following.
Can a non-Irish citizen buy a house in Ireland?
Even though they are not Irish citizens, non-Irish nationals can still buy real estate in Ireland. This applies to both homes and businesses. Given that Ireland will have the EU’s fastest-growing economy in 2020, Irish real estate is a popular investment choice.
Can I legally call an Irish house my home?
Owning property in Ireland is not equivalent to being legally allowed to reside there. You’ll need to have the right visas and permits to enter the country. The passport you use will determine this. Irish law allows people of the United Kingdom, the European Union, and the European Economic Area to settle and work in the country. Tourist visas are required for stays in Ireland longer than 90 days.
If you are a non-EEA national with significant finances to invest in Irish real estate, you may want to look into the Immigrant Investment Programme (IIP). If your application is successful, you and your family will be able to stay in Ireland permanently.
If I buy a commercial property in Ireland, are I allowed to set up shop there?
As with the aforementioned, buying a commercial property in Ireland does not immediately grant you the legal ability to run a business in the country. Ireland allows company startups just as the UK, EU, EEA, and Switzerland. In other nations, you may need special approval.
Where should I start if I want to buy a house in Ireland?
Get started by scouting out potential properties. If you can’t make it to Ireland, you can still see it by going online or getting in touch with an agent. Once you’ve located the appropriate property, you must make an offer. If we accept your offer, we’ll need a deposit to hold the reservation. This is helpful since it means the real estate agent won’t put the house up for sale for an extended period of time. The money is non-refundable after the contracts have been signed. A conveyancing solicitor (lawyer) in Ireland should then be contacted to handle the rest of the procedure.
Where can I find an Irish real estate attorney?
To locate an attorney in Ireland, visit the website of the Law Society of Ireland. The website’s listing for the company or solicitor will include a statement to that effect. Conveyancing is the legal term for the steps involved in the purchase or sale of real estate. This subfield of law requires extensive expertise.
What if I am unable to travel to Ireland to sign the necessary documents?
If you need to sign documents in Ireland but are unable to physically be there, you may want to consider giving your solicitor power of attorney. This gives your lawyer the authority to act on your behalf during the transaction.
Can I put it up for rent?
The property may be rented out, yes. Landlords who do not live in the country will have to pay taxes. Consult your attorney for further details.
A PSS number is…?
To buy a home in Ireland, you’ll need a Personal Public Service (PPS) number issued by the Irish government. You’ll be able to prove your taxpaying status using this number. It’s the same as a Social Security Number (SSN) in the United States or a Social Insurance Number (SIN) in Canada. Consult your legal counsel for assistance.
Should I report my Irish assets for tax purposes?
The property acquisition must include Stamp Duty. The price you see here is final. There is also a property tax at the municipal level. If you sell a property other than your principal residence for a profit, you must pay capital gains tax. It’s not always the case. Properties used for commercial purposes might be charged VAT.
The Irish Income Tax Act may require non-residents to pay tax. With 73 other countries, Ireland has signed tax treaties to avoid double taxation. Citizens of these countries will not be subject to double taxation on the same income.
Where can I start looking for an Irish home?
- Real estate brokerages and related agencies and online portals like Daft.ie, Myhome.ie and SellmyhomeIreland.com
- Using the services of a real estate agent in the United Kingdom may prove useful. A knowledgeable real estate firm or agent may aid in the search for and acquisition of your ideal home.
- The Property Services Regulatory Authority (PSRA) website is where you should start your search for a real estate agent in Ireland. There are legitimate real estate agents listed here.
- The Irish version of the Yellow Pages, called the Golden Pages, may be accessed online as well. You might also try looking for agents in your desired field online.
- Sites devoted to Irish real estate
It is possible to look for Irish real estate on your own.
How do I go about locating the ideal home?
There are nine different kinds of real estate.
You might be surprised by the abundance of Georgian-style residences in Ireland, despite the fact that it shares many architectural styles with the United Kingdom and Ireland. ‘Dutch Billy’ houses and quaint worker cottages from the 19th century coexist here. These tall, thin houses with expansive terraces are reminiscent of those seen in the Netherlands and Belgium. Even if you’re not looking for a property in a historic style, Ireland has plenty of options.
Your choice of property in Ireland should reflect your needs, the size of your family and your budget, as well as the housing options in the area where you hope to settle.
What kind of shape the property is in
It is essential to hire a professional surveyor to check out the home you want to buy. It’s possible that the Regency house you fell in love with has major structural difficulties.
In the same way that sellers and estate agents in the UK are not obligated by law to disclose any concerns with the condition of the property, the same is not true in Ireland. An impartial third party inspector should be hired to check the structure. You may find a qualified surveyor in Ireland through the Society of Chartered Surveyors Ireland.
There are three varieties, each with additional information9:
- Type 1: A brief inspection and written report.
- Type 2: A thorough examination. It’s important to inspect the insulation, drain borders, and overall layout.
- Type 3: A comprehensive survey in which the surveyor opens services hatches and raises flooring to investigate items like the central heating system.
You also need to keep an eye out for
In order to sell a home in Ireland, the seller must provide a Building Energy Rating (3 BER) for the dwelling. You should verify this rating because it has an effect on your monthly energy costs.
Finding out if the home is in a High Radon Area is also crucial. The radioactive gas radon is produced when uranium decays underground. Lung cancer is a possible outcome of exposure. The Environmental Protection Agency is where you may go to see the Radon Hazard Map or learn more.
How can I go about purchasing a property that is currently held by a foreign entity?
Buying a house in Ireland follows a process similar to that in the UK. This is the general procedure you can count on:
- Get pre-approval from a mortgage lender by discussing your financial situation with a mortgage counsellor.
- Find a lawyer.
- House-hunting may now begin. You may need to take a viewing trip (or several) to Ireland if you don’t already reside there.
- Choose a home you like and put a bid on it. Sale Agreed if the offer is accepted.
- Get a home inspection.
- The parties must sign the sales contract drawn out by the real estate brokers and the lawyers handling the deal.
- Your attorney will conduct title searches and compile the results into a Deed of Conveyance.
- Acceptance of the Mortgage, Contract Exchange, and Full Payment of All Taxes
- Grab the keys and start packing.
When acquiring real estate in Ireland, what are the necessary formalities?
Buying a home in Ireland does not necessitate a detailed legal analysis. These are the most crucial details to remember:
- Many estate agents in Ireland9 will proudly display their PSRA-issued licence, as this is a legal requirement for the industry in Ireland9.
- A Commissioner of Oaths, who acts similarly to a notary, is required by law to monitor real estate transactions in Ireland9. In a moment, we’ll be discussing their offerings in detail.
- Buying property in Ireland does not necessitate a visa. There is no requirement for a visa to live in Ireland for British or Irish citizens.
Once the contract is signed, you risk losing your deposit.
Need a mortgage or a bank loan?
If you live in Ireland or are a resident of Ireland, getting a mortgage from an Irish lender is much simpler. If you are a non-citizen currently residing in another country, you may have trouble getting a mortgage loan. And most British banks probably won’t provide you a mortgage to buy a house in Ireland.
Choices can be made. The first step is to choose an Irish lender with a solid presence in the UK. Finding the appropriate lender might be difficult, but a mortgage broker can assist.
You can rent a place to live in Ireland while you look for a permanent residence there. Proof of employment and residence in Ireland for a minimum of 12 months and a minimum of 6 months is preferred by most lenders13.
After finding a mortgage for which you qualify, these are the most crucial details to consider before submitting an application.
Your borrowing limit is capped at 3.5 times your annual gross income. Some exceptions may be made for first-time and repeat purchases.
A minimum of 10% is required for first-time purchasers, while a minimum of 20% is required for all other buyers. The minimal down payment for a buy-to-let investment is 30%.
To see if you qualify for a mortgage, a “stress test” will be run. It takes into account things like your earnings and spending patterns.
You should get life insurance to cover your mortgage.
When will I be expected to pay taxes or other fees?
Here is a rundown of the primary expenses you may expect to incur when purchasing a home in Ireland:
- Legal services in Ireland are not subject to a standardised fee structure. It might be a set amount, or a percentage of the total price. Prices start at €900 + VAT per month. The typical percentage charge is around 1% plus VAT.
- Stamp duty: up to EUR1,000,000, 1% of property price (2% beyond this level) Mortgage valuation fee: EUR150–€200 if applicable.
- Cost of a search – around EUR150
- Fees to register a property : This is with the Land Registry range from €400 for properties worth up to €50,000 to €800 for those worth €400,000 or more. The mortgage price is €175 and the cost of a certified copy of the title plans is €40.
- Notary or Oaths Commissioner Fee, Euro 44
- Including house and life insurance in your budget is crucial.