Anybody investing in Ireland?

Question

I recently acquired Irish citizenship (also a U.S. Citizen). I'd be interested to hear about any other U.S. Citizens who invest in Ireland. I'd be looking for cash flowing properties.

Generally, how does it compare to investing here in the states?

Do you put down a certain percent? Are there 30 year mortgages?

Are returns similar?

How is it taxed? Do profits get taxed on my U.S. Tax return? Would I file an Irish tax return (I'm assuming they have those). Or is it completely separate?

What kind of entity do you use? I would probably invest with my sister, who is also an Irish citizen.

Any info would help.....

Thanks!

Jim

Colin G Murphy · Answer

Hi @Jim Tiernan

Real estate is booming in Ireland at the moment, or rather it is in Dublin, which enjoyed some of the fastest property appreciation in the western world in 2014.

Ireland is a three tier market, with huge amounts of corporate/hedge fund cash pushing yields down and prices up in the Dublin market (first tier), some decent deals available in Cork & Galway if you have excellent local knowledge and partners (second tier) and no signs of recovery and tiny sales transactions in rural areas and tertiary cities (Leitrim, Limerick etc).

It is extremely difficult for an overseas resident (regardless of nationality) to get a mortgage for a rental property in Ireland. Several clients of mine have tried and failed. Even an Irish resident would struggle to get more than 65% LTV. There are 30 year mortgages, but with variable interest rates.

You would have to file an Irish tax return on any income and profit earned from an Irish property. You would also have to declare this income in your US tax returns, although you would get a credit for the tax already paid as per the double taxation treaties. Here is a link with further info: https://www.daft.ie/report/ronan-lyons-2015q1-sale

Jane Gallo · Answer

Great summary, @Colin Murphy. Thanks.

Jim Tiernan · Answer

thanks for the info @Colin  Murphy!