Proposed changes to the tax regime governing property investment have highlighted the need for a coherent long-term tax policy for Irish property.
Tax certainty is a cornerstone of Ireland’s strategy of foreign direct investment. Therefore, the proposed changes to regulated fund vehicles may disappoint foreign investors. While the changes are understandable in the evolving international tax scenario, the fact remains that the country needs to continue to attract and retain foreign investors in order to have a fully functioning market.
The past two months have seen much engagement between key stakeholders regarding the role of regulated fund vehicles in the Irish property market. With the publication of Thursday’s Finance Bill, planned changes to the taxation of non-residents are now known.