Buying in Ireland: A Guide for International Buyers

Published on October 4, 2025 and written by Cyril Jarnias

Ireland, with its lush landscapes, rich cultural heritage, and dynamic economy, is attracting an increasing number of foreign investors to its real estate sector. Whether you’re looking to purchase a second home in the heart of Dublin or invest in a rental property in the Irish countryside, it’s essential to understand the specifics of the local real estate market. This article will guide you through the key steps of the property purchase process in Ireland for foreigners, covering regulatory, tax, and practical aspects.

Ireland Welcomes Foreign Investors with Open Arms

Good news for international buyers: Ireland welcomes foreign investment in real estate. Unlike some countries that impose strict restrictions on non-resident buyers, Ireland adopts an open and liberal approach. Foreigners, whether EU nationals or from third countries, enjoy the same rights as Irish citizens when it comes to property acquisition.

This open policy reflects the Irish government’s desire to stimulate its real estate market and attract foreign capital. Whether you want to buy a house to live in, an apartment to rent out, or land to build on, you won’t face legal obstacles related to your nationality.

It’s important to note, however, that certain restrictions may apply in specific cases, particularly for the purchase of agricultural land. In such cases, prior authorization from the Land Commission may be required. Similarly, if you plan to acquire a property valued at over 1 million euros, you’ll need approval from the Central Bank of Ireland.

In summary, Ireland offers a favorable framework for foreign real estate investors, with few entry barriers. This openness, combined with a dynamic real estate market and positive economic prospects, makes Ireland an attractive destination for international buyers.

The Irish Regulatory Framework: What You Need to Know Before Investing

Ireland has a well-established regulatory framework governing real estate transactions. Understanding these rules is essential to successfully complete your purchase project with peace of mind.

The “conveyancing” system: An Irish particularity

In Ireland, the property transfer process, called “conveyancing,” is typically handled by specialized lawyers. This system aims to ensure the legal security of the transaction and protect the interests of both buyer and seller.

The main steps of conveyancing are as follows:

• Verification of the property title
• Drafting and negotiation of the sales contract
• Conducting necessary searches (planning, easements, etc.)
• Finalizing the transaction and registering the new owner

The importance of the “booking deposit”

When purchasing property in Ireland, it’s common to pay a “booking deposit” when making an offer. This deposit, typically around 3 to 5% of the sale price, serves to reserve the property and demonstrate the seriousness of your purchase intent. It’s important to note that this deposit is not always refundable if you withdraw later.

The role of the Property Registration Authority (PRA)

The PRA is the body responsible for registering property titles in Ireland. After the sale is finalized, your lawyer must register the property transfer with the PRA. This registration is crucial as it formalizes your status as the new owner and protects your rights to the property.

Construction and renovation obligations

If you plan to buy a property to renovate or build on land, you’ll need to comply with local regulations regarding planning and construction. This typically involves obtaining planning permission from local authorities.

Additionally, Ireland has implemented strict standards for building energy performance. When purchasing an existing property, the seller must provide you with a Building Energy Rating (BER) certificate, which assesses the property’s energy efficiency.

Real Estate Taxation in Ireland: What Foreign Investors Need to Know

Taxation is a crucial aspect to consider when purchasing property in Ireland. As a foreign investor, it’s essential to understand the tax implications of your acquisition to avoid any unpleasant surprises and optimize your investment.

Stamp Duty: A tax not to be overlooked

Stamp Duty is a tax levied on most real estate transactions in Ireland. Its rate varies depending on the type of property and its price:

• For residential properties: 1% on the first 1 million euros, then 2% above that
• For non-residential properties: fixed rate of 7.5%

This tax is payable by the buyer and must be paid within 30 days of signing the deed of sale.

Local Property Tax (LPT): An annual tax for property owners

The LPT is an annual tax based on the estimated value of your property. Its amount varies depending on the property’s value and location. This tax applies to all property owners, whether residents or non-residents.

Tax on rental income

If you buy a property with the intention of renting it out, rental income will be subject to Irish income tax. The tax rate depends on your personal situation and the amount of income received. For non-residents, a flat rate of 20% is generally applied.

Capital gains tax

If you sell your property at a profit, you’ll be subject to Capital Gains Tax. The standard rate is 33% on the realized gain. Exemptions may apply, particularly if the property was your primary residence.

International tax treaties

Ireland has signed tax treaties with many countries to avoid double taxation. If you’re a tax resident of a country that has a treaty with Ireland, you may benefit from favorable provisions regarding the taxation of rental income or capital gains.

VAT on new properties

The purchase of a new property in Ireland is generally subject to VAT at a rate of 13.5%. This VAT is included in the sale price, but it’s important to account for it in your overall budget.

Essential Documents to Complete Your Property Purchase in Ireland

To successfully complete your property purchase project in Ireland, you’ll need to gather a number of essential documents. This step is crucial to ensure the legality and security of your transaction.

Identification and proof of address

As a foreign buyer, you’ll need to provide:

• A copy of your valid passport
• Recent proof of address (electricity bill, bank statement, etc.)

These documents are necessary for the customer identification (KYC – Know Your Customer) required by anti-money laundering legislation.

Proof of financing

If you’re financing your purchase with a mortgage, you’ll need to provide:

• A loan offer from your bank
• Recent bank statements
• Proof of income (pay slips, tax notices)

If you’re buying with cash, you’ll need to provide proof of fund availability and their origin.

Property-specific documents

The seller will need to provide you with several documents related to the property, including:

• The property title
• The Building Energy Rating (BER) certificate
• Property plans
• Planning permissions for recent constructions or modifications
• Invoices for major work carried out

Sales contract

The sales contract (contract for sale) is a key document in the transaction. It will be drafted by the seller’s lawyer and reviewed by your own lawyer. This contract details the sale conditions, price, any contingencies, etc.

Search certificates

Your lawyer will conduct various searches on the property and must obtain certificates confirming the absence of charges or disputes on the property.

TR1 form

This official form, used for property transfer, must be signed by both seller and buyer. It will then be registered with the Property Registration Authority.

Irish tax number

To finalize the transaction and pay associated taxes, you’ll need an Irish tax number (PPS number). If you don’t have one, you’ll need to apply for one from the Irish authorities.

Key Steps in the Irish Property Purchase Process

Buying property in Ireland involves following a well-defined process. Here are the main steps you’ll need to take as a foreign investor:

1. Property search and selection

Start by defining your criteria (budget, location, property type) and conduct your research. You can use specialized websites, engage a local real estate agent, or even visit the area to spot opportunities.

2. Viewing and negotiation

Once you’ve identified an interesting property, arrange a viewing. If the property suits you, you can make a purchase offer. Negotiation is common in Ireland, so don’t hesitate to offer a price below the asking price.

3. Payment of the booking deposit

If your offer is accepted, you’ll typically need to pay a booking deposit to reserve the property. This amount is usually 3 to 5% of the sale price.

4. Engaging a lawyer

Engage a lawyer specialized in property law to handle the conveyancing process. They will verify the property title, conduct necessary searches, and negotiate the terms of the sales contract.

5. Obtaining financing

If you need a mortgage, this is the time to finalize your application with your bank. Make sure you have all the necessary documents to obtain your loan offer.

6. Signing the contract

Once your lawyer has verified all legal aspects and you’re satisfied with the conditions, you’ll sign the sales contract. At this stage, you’ll typically need to pay an additional deposit to reach 10% of the sale price.

7. Finalizing searches and financing

Your lawyer will complete all necessary searches while you finalize your financing. This is also the time to take out insurance for the property.

8. Closing the sale

On the closing day, the balance of the purchase price is transferred to the seller, and you receive the keys to your new property. Your lawyer will handle registering the property transfer with the Property Registration Authority.

9. Paying taxes

Don’t forget to pay the Stamp Duty within 30 days of closing the sale.

Purchasing property in Ireland represents an interesting opportunity for foreign investors. With an open market, a stable regulatory framework, and favorable economic prospects, Ireland offers an environment conducive to real estate investment.

However, as with any investment project abroad, it’s crucial to prepare well and surround yourself with competent professionals. Understanding the purchase process, legal and tax obligations, as well as collecting the necessary documents are all essential steps to successfully complete your acquisition.

Remember that each situation is unique. The specifics of your project (property type, location, tax status, etc.) can significantly impact the steps to be taken and costs to be anticipated. That’s why it’s always recommended to consult local experts for personalized advice.

Finally, take the time to familiarize yourself with the Irish real estate market, its trends, and regional particularities. Good knowledge of the terrain will allow you to make informed choices and maximize the chances of success for your investment.