From the lush green landscapes to the friendly locals and rich culture, it’s no wonder why Ireland is a top destination for many foreigners looking to invest in property. But before you dive headfirst into the Irish real estate market, there are a few things you should know. In this blog post, we’ll cover everything from legal requirements to financing options so that you can make an informed decision when buying or selling property in Ireland as a foreigner.”
The Different Types of Property Available in Ireland
If you’re looking to buy property in Ireland as a foreigner, there are a few different types of property available to choose from. Below, we’ll outline the different types of property available in Ireland, as well as some pros and cons of each type:
- Residential property: this includes houses, flats/apartments, and other types of residences. Pros: usually relatively easy to find and purchase, can be rented out for income. Cons: may require more maintenance/upkeep than other types of property.
- Commercial property: this includes office buildings, retail storefronts, warehouses, etc. Pros: can be leased out for income, often appreciates in value over time. Cons: it may be more expensive to purchase than a residential property and may require more extensive due diligence before purchase.
- Agricultural land: this includes farmland used for crops or livestock. Pros: can provide a steady income stream through farming or leasing to others, often appreciates in value over time. Cons: it may require more extensive due diligence before purchase, may be difficult to find agricultural land that is suitable for your needs.
- Vacant land: this is land that is not currently developed or in use. Pros: it can be used for a variety of purposes, usually relatively easy to purchase. Cons: it may require more due diligence before purchase and may require more resources (time, money, etc.) to develop than other types of property.
Requirements for Foreigners Seeking to Buy Property in Ireland
- Valid Passport: All foreigners must have a valid passport to purchase property in Ireland.
- Residency Status: In order to purchase property in Ireland, non-nationals are required to demonstrate that they have the right to live and work in Ireland, either through a residency visa or other suitable documentation.
- Financial Means: Non-nationals must have sufficient financial means to cover the cost of purchasing and maintaining the property, including legal fees, taxes, stamp duty and any other associated costs.
- Tax Registration: Foreigners who buy property in Ireland need to register for tax purposes with Revenue Commissioners, which includes providing proof of identity and address as well as details on their financial situation and business activities carried out in Ireland, if applicable.
- Property Searches: It is recommended that potential buyers conduct searches on the proposed property prior to purchase to check for any ownership issues or liens against it.
Legal Considerations for Foreigners When Buying Property in Ireland
- Obtain Legal Advice: Before buying any property in Ireland, it is essential to get legal advice from a qualified Irish solicitor. This will ensure that all aspects of the sale and purchase are dealt with correctly and in accordance with Irish law.
- Tax Considerations: Ownership of property in Ireland may attract liability for taxation. It is important to understand the implications of this and to seek legal advice on how to minimize or avoid taxation liability.
- Tenancy Agreements: If the intention is to let out a property, then a Tenancy Agreement should be drawn up between the landlord and tenant, setting out the terms of occupancy and other relevant conditions.
- Property Title: As part of the purchase process, it is important to check that title to a property can be transferred free from encumbrances such as mortgages or other liens.
- Mortgage Arrangements: If financing is required for a purchase, then specific arrangements must be made with an Irish financial institution, as foreign lenders cannot provide mortgages in Ireland without prior consent from the Central Bank of Ireland.
- Planning Permission: All planning applications must be made through local planning authorities, and they must comply with the relevant regulations and guidelines.
- Building Regulations: All new buildings must comply with Irish building regulations, and any alterations to existing buildings must also be in accordance with these requirements.
- Insurance: It is important to ensure that all necessary insurance coverage is taken out to protect against potential risks associated with owning a property in Ireland.
What is the approximate cost of different properties in Ireland?
The cost of properties in Ireland can vary greatly depending on the area and condition of the property. Generally speaking, a one-bedroom apartment would cost around €130,000 – €140,000. A two-bedroom apartment or house would range from €160,000 – €250,000. A three to four-bedroom house could cost anywhere from €200,000 – €400,000. Prices for larger properties can go up to over a million euros.
It is important to note that the cost of property in Ireland can also be affected by factors such as location, condition, availability, and amenities.
Benefits of Buying Property in Ireland as a Foreigner
There are many benefits of buying property in Ireland as a foreigner. The Irish government offers a number of tax incentives for foreign investors, including a 12.5% corporate tax rate and a favourable capital gains tax regime. In addition, the Irish property market is currently undervalued, meaning that there is potential for strong capital growth in the future.
Ireland is also a very attractive country to live in, with its beautiful scenery, friendly people and a strong economy. Dublin, in particular, is one of the most vibrant and cosmopolitan cities in Europe. So if you’re thinking of buying property in Ireland, you really can’t go wrong!
Tax Implications of Purchasing Property as a Foreigner
If you are not a resident of Ireland, there are a few things to be aware of before purchasing property here. For starters, you will need to obtain what is called a Permanent Residence Permit in order to buy property. This can be applied for through your local Irish embassy or consulate.
You will also be subject to capital gains tax on any profits you make from selling the property, as well as stamp duty and income tax on any rental income generated from the property. However, there are a number of tax treaties in place between Ireland and other countries which may exempt you from paying some or all of these taxes. It is advisable to speak to a qualified tax advisor before purchase to ensure you are fully aware of your obligations.
Conclusion
Buying property in Ireland as a foreigner can be a tricky process, but with the right guidance and research, it is definitely possible. As long as you ensure that you meet all legal requirements, do your due diligence on the seller, take out insurance for any potential risks and make sure you understand how local taxes are applied to foreign buyers, then you should have no problem purchasing property in Ireland. With these tips in mind, we wish you luck on your journey towards owning your dream home in beautiful Ireland!
FAQS
Does Irish law allow foreigners to buy a property?
Yes, Irish law does allow foreigners to buy property. However, there are a number of restrictions and conditions that must be met in order for the purchase to be completed. Generally speaking, you must be a national of an EU or EEA Member State or Switzerland, have comprehensive sickness insurance cover in Ireland, be habitually resident here and be ordinarily resident in the EU or EEA Member State or Switzerland for at least 3 months before purchasing the property. You also cannot already own another property in Ireland or elsewhere.
Can I get a mortgage if I’m a foreigner buying property in Ireland?
In order to get a mortgage as a foreigner buying property in Ireland, you’ll need to meet the same criteria as an Irish citizen would. This includes having a good credit score, enough saved for a deposit (usually 20% of the purchase price), and being able to prove your income with payslips and tax returns
