French SCPIs Investing In Irish Property

• Published date: 29 May 2023
• Subject Matter: Real Estate and Construction, Tax, Real Estate, Landlord & Tenant - Leases, Income Tax, Corporate Tax
• Law Firm: Maples Group
• Author: Mr William Fogarty, Andrew Quinn, Lynn Cramer, Diarmuid Mawe and Craig Kenny
• topic: Tax Law,Real Estate

French société civile de placement immobilier ("SCPIs") represent an active and growing sector of the Irish real estate market.

SCPIs have been acquiring Irish assets in the residential, logistics and office sectors for a number of years, however activity has increased in recent months.

As existing owners adapt to life in the Irish property market and new entrants plan acquisitions, it is useful to summarise some aspects of Irish tax law which should be considered.

Irish Tax on Rental Income

Typically, the SCPI will acquire the Irish real estate directly or by using an intermediate holding company. In each case, it is likely that Irish tax law will have informed the choice.

Prior to 2022, there was an Irish tax advantage to using a non-resident company. An Irish resident company was subject to tax at 25% on its rental profits. By contrast, a non-resident company was subject to tax at 20%. The non-resident company was also outside the scope of certain Irish rules which limited...