Does your company generate rental income from Irish property?

As of 1 January 2022, all corporate landlords (resident and non-resident) are subject to corporation tax regime. Holding your rental property within a corporate entity may be more beneficial than holding it personally. Some of the advantages of doing so are outlined below.

Tax Saving

Companies generating rental income are taxed at 25%, while individuals could be taxed up to 52% on rental income earned. Individuals are subject to USC and PRSI, unlike companies.

Disposal Incentive

In certain circumstances, the sale of a company holding a rental property may be done without triggering a tax charge.

Pooling of resources

Companies can function as efficient vehicles for pooling funds for property investment, allowing for potential gains that may be unrealised otherwise.

If you have any questions in relation to the above, or if you would like to discuss any other corporation tax matter, please complete the contact form below and one of our Trojan Tax advisors will be in touch.