Commercial Property Tax in Ireland

At McCarthy + Co Solicitors LLP, we provide tailored advice to property purchasers, sellers, tenants, and developers, ensuring compliance with tax regulations while maximising financial efficiency. Whether you’re concerned about the implications of VAT, stamp duty, or capital gains tax, our team has the knowledge and expertise to ensure your commercial property transactions are handled with precision and care.

Arrange a Consultation

Commercial buildings by the river in Dublin

Ensuring Tax-Efficient Commerical Property Transactions

Buying, selling, or leasing commercial property in Ireland requires strategic planning to ensure compliance with all legal and financial obligations. At McCarthy + Co Solicitors LLP, we help our clients to optimise their tax efficiency and navigate the complexities of property transactions with confidence.

Tax planning strategies we assist our clients with include:

Assessing VAT Implications – The sale or lease of commercial property may be subject to VAT at the standard rate of 23%. However, certain transactions might qualify for VAT exemptions or the reverse charge mechanism, depending on specific conditions. Properly structuring transactions can help manage VAT liabilities effectively.
Property Holding Structures – Helping our clients evaluate the benefits of holding property through a company versus personal ownership.
Planning for Stamp Duty – Assisting our clients in effectively planning and structuring property transactions to optimise costs and manage the 7.5% stamp duty rate on property purchases.
Leveraging Tax Reliefs and Incentives – Providing tailored advice on available tax reliefs and incentives related to property development and refurbishment.
Utilisation of Capital Allowances – Helping our clients claim capital allowances on qualifying expenditures, such as machinery within the property.

Our comprehensive approach ensures that each client receives bespoke advice tailored to their unique circumstances, helping them achieve their financial goals while mitigating potential risks. By addressing all the key areas of tax planning, we empower our clients to make informed decisions and execute transactions that align with both their immediate objectives and long-term investment strategies.

Arrange a time to speak with a solicitor here today by completing our confidential online form.

Call us Freephone to Discuss Your Case:

1800 390 555

Request A Call Back

Get a call back from our legal team at a time that suits you.

Facebook
This field is for validation purposes and should be left unchanged.
Name*
First Name* Last Name*
Email*
Contact Number*
Best Day/Time to Call
CAPTCHA

Highly rated on TrustPilot

Read the latest reviews written by our happy clients.

Frequently Asked Questions

Questions we are often asked in relation to commercial property tax.

What do I need to know about VAT and commercial property?

VAT on commercial property transactions generally falls into the following categories.

New Properties – The sale of a new commercial property is subject to VAT at the standard rate of 23%. A property is considered “new” if it is sold within five years of its completion. Additionally, the second and subsequent sale within this five-year period is also subject to VAT if the property has been occupied for less than two years.
Old Properties – Sales of older properties are generally exempt from VAT. However, the vendor and purchaser can jointly opt to tax the sale, making it subject to VAT. This option is often exercised to prevent a VAT clawback for the vendor.
Leases – The letting of commercial property is typically exempt from VAT. However, landlords have the option to tax the rent at the standard rate of 23%. This election allows landlords to reclaim VAT incurred on the acquisition or development of the property.

How much CGT is paid on sales and are there any reliefs?

The standard Capital Gains Tax (CGT) rate on the sale of commercial property is 33%. Reliefs that may reduce this liability include:

Indexation Relief – Applicable to assets acquired before 2003, adjusting the cost for inflation.
Property Acquired Between 7 December 2011 and 31 December 2014 – Full or partial relief if the property is held for at least four years.
Revised Entrepreneur Relief – A reduced 10% CGT rate on gains up to €1 million from qualifying business disposals.
Retirement Relief – Available for individuals aged 55 or over, subject to conditions.

Detailed information on these reliefs is available on the Revenue Commissioners’ website.

Who pays stamp duty on commercial property transactions and how much is it?

Stamp duty on commercial property transactions is payable by the buyer upon completion of the purchase. The current rate, set at 7.5% of the purchase price, applies to all non-residential property transactions and has been in effect since 9 October 2019. This replaced the previous rate of 6%, introduced in 2018, which itself was an increase from the earlier rate of 2%.

About McCarthy + Co

McCarthy + Co. are a team of solicitors with more than 30 years of experience in providing legal advice, guidance and assistance to clients across Ireland.

We are a family-run business with offices in Dublin and Cork, but we have dealt with clients everywhere from Galway and Limerick to Waterford. We are honest, plain-speaking and thorough – we will work alongside you to ensure your property sale or purchase is as efficient as possible.

Arrange a Consultation