Finance Bill sets tax on property vulture funds at 20%

Two tax rates — of 20% and 25% — will be applied on so-called vulture funds and other overseas investors which bought distressed property and loans after the financial collapse.

The Finance Bill published yesterday contained plans to tax vulture funds following an outcry over ways overseas investors used loopholes in Irish real estate funds and Section 110 of the 1997 Taxes Consolidation Act to avoid paying any tax on profits made from the sale of assets.

The 25% rate will specifically apply to special purpose vehicles (SPVs) using Section 110 loopholes. A withholding tax of 20% will apply to investors designated as Irish real estate funds.