IRELAND Law and Practice Contributed by: Diarmuid Mawe, Craig Kenny, Katelin Toomey and William Fogarty, Maples Group
2.11 Legal Restrictions on Foreign Investors All investors need to comply with anti-money laundering legislation, including foreign inves - tors. The Screening of Third Country Transactions Act 2023 (the “2023 Act” ) commenced in January 2025 and established Ireland’s first regime for screening investments from third-party coun - tries (ie, those outside the EEA and Switzerland) in certain Irish industries that could pose a risk to the state’s security or public order, in con - junction with an EU regulation. These industries include energy, transport, water, health, com - munications, media, data processing or stor - age, aerospace, defence, electoral or financial infrastructure, and sensitive facilities, as well as land and real estate crucial for the use of such infrastructure. Transactions falling within the scope of the act will need to be notified to the Minister for Enterprise, Trade and Employment in advance, and will require the consent of the minister to proceed. Acquisitions are financed by banks and non- bank lenders advancing both senior and mez - zanine debt to fund the acquisition and develop - ment of commercial property. The choice between bank financing or financing by alternative lenders is influenced by the com - mercial terms on offer. Alternative lenders are not subject to the regulatory restraints imposed on banks, so have a different appetite for risk. There is a trend towards alternative lenders providing development finance at much higher 3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate
loan-to-value ratios than banks. Such financing is usually made available at a higher margin with prepayment, arrangement and exit fee mecha - nisms, as well as equity interests in the transac - tions. 3.2 Typical Security Created by Commercial Investors A lender will provide finance secured over the relevant property that will be registered as first- ranking in the appropriate property registry, thereby securing priority of the security for the lender’s benefit. Where a lender is providing finance for development purposes, it would be normal for them to receive collateral warranties from the members of the professional team, such as architects, designers and engineers, as well as step-in rights. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders There are no restrictions on the granting of security over real estate to foreign lenders or repayments to foreign lenders. Pursuant to the Companies Act 2014 (the CA), the directors of an Irish company have the authority to exercise the company’s power to borrow and to mort - gage or charge its property, subject to Irish law and its constitutional documents. The 2023 Act will affect foreign lenders in certain situations, and they should understand its implications. See 2.11 Legal Restrictions on Foreign Investors for further details on the 2023 Act. 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security Registration of Security A fee of EUR40 is payable in respect of the reg - istration of security with the Companies Regis - tration Office (the CRO). It is a statutory require - ment for security created by an Irish company to be registered with the CRO within 21 days,
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