Irish Capital Gains Tax Relief for Land and Buildings Situated in an EU/EEA CountryPosted by Gerry Higgins
Section 64 Finance Act 2012 introduces an attractive Capital Gains Tax (CGT) exemption for persons (individuals, companies, trusts etc.) in respect of property purchased between midnight on 6 December 2011 and the end of 2013.
If a property is acquired during this period and held for at least 7 years, the capital gain related to that 7 year holding period will be fully relieved from Irish CGT.
The exemption will work to time-apportion gains so that a property held for 10 years will be 7/10ths exempt from CGT, while a property held for 7 years will be entirely exempt (7/7ths).
Land and buildings situated in the EEA countries, includes all EU countries and in addition Norway, Iceland and Leichtenstein.
This is a very attractive relief, in particular with regard to Irish property and indeed UK property held by a non-UK resident (e.g. an Irish resident company). It could also be usefully used in respect of EEA countries with low rates of CGT or low rates of withholding tax for non-residents.