IRELAND Law and Practice Contributed by: Diarmuid Mawe, Craig Kenny, Katelin Toomey and William Fogarty, Maples Group
8.5 Tax Benefits Historically, Ireland allowed individuals to offset the cost of investment properties against their other income, but such schemes were severely curtailed from 2007. There are now minor reliefs, such as the rent-a-room relief, which exempts up to EUR14,000 annually. Commercial land - lords can claim tax depreciation (capital allow - ances) on capital expenditure for fixtures and fittings. This is provided at a rate of 12.5% over eight years. Certain types of industrial buildings (eg, factories) can qualify for industrial building allowance at a rate of 4% over 25 years.
Non-resident individuals investing in Irish prop - erty are charged Irish income tax on taxable rental profits, on a fiscal-year basis. A non-resi - dent individual or partnership is subject to rental income tax at between 20% and 41%. A non- resident company is subject to 25% tax on rental income, minus deductible rental expenses. Capital gains tax is applicable at a rate of 33% on the gains made on a disposal of property in Ireland. If the seller is non-resident, this will only relate to the sale of specified assets.
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