Ireland to hit foreign investors
Non-resident investors in Irish real estate funds will have to pay a 20 percent withholding tax from next year, the finance ministry said.
Ireland last month proposed to amend tax laws for so-called “Section 110” special purpose vehicles and widened the net on Thursday to include all funds where 25 percent of their value is made up of Irish real estate assets.
Analysts at Goodbody Stockbrokers said uncertainty around the legislation that governs QIAIF’s and ICAV’s had delayed well in excess of 100 million euros worth of deals in the run up to last week’s budget. Non-Irish investors are responsible for 71 percent of property sales so far in 2016, they said.