Tax breaks, incentives attract British money

The environment for investing in property in Ireland is heating up as tax breaks and incentives are beginning to tempt British money into the Irish property market.

Property consultants Savills Ireland said that 2013 was a bumper year for cash sales by investors and they believe 2014 will see even further international investment interest in Ireland — particularly from Britain.

There are several key factors now coming together that make Ireland a tempting investment opportunity, ranging from removal of Britain’s capital gains tax to the strength of sterling against the euro.

Economist and research director at Savills Ireland John McCartney said that these factors will drive deposits in 2014.

“The capital gains tax exemption on investment properties which are held for seven years has proved very effective in attracting new money into Irish investment property. The decision to extend this for a further 12 months is almost a mirror image of what is happening in the UK.

“And, combined with low interest rates and the recent Dirt increase, this will continue to drive cash from deposits into bricks and mortar.”

Another key factor that has been pushing up prices is the shortage of supply and causing an increase in rents particularly in the capital.