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Tax Incentives For Property Investments

Urban Renewal Tax Relief

A package of tax incentives is available for urban and rural development in designated areas of certain towns and cities in Ireland.

In addition, there are incentives available to encourage the development of certain traditional resort areas, hotels (in certain counties), multi-story car parks, nursing homes (and private convalescent homes), childcare facilities and Park and Ride facilities. A number of these schemes are terminating on 31st December 2003 and have not been extended by the budget on 3rd December 2003.

For passive investors, restricted capital allowances are available for capital expenditure incurred on certain buildings. For buildings other than hotels, there is a €31,750 per individual with effect from 3 December 1997 (although certain transitional provisions apply for pipeline projects at that date). In the case of hotels, there is no relief for passive investors, unless the hotels are located in certain counties.

Subject to the above, the incentives include:

For commercial use:

  • capital allowances on the development of commercial buildings (excluding offices) used for trade
  • double rent allowance for traders
  • remission of local authority rates (now restricted by EU regulations.

For residential use:

  • tax allowance for expenditure on private owner occupied residences
  • tax relief for construction/conversion on rented residential property.
  • Any expenditure on the repair, maintenance or restoration of approved buildings and gardens of 'significant horticultural, scientific, historical, architectural or aesthetic interest', to which reasonable access is given to the public, is deductible for tax purposes.

In addition, there is relief for expenditure of up to an aggregate of €6,350 per annum on certain other costs such as repair of contents, provision of public liability insurance and installation of a security system.




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"I run my own business and after years of struggling with a demanding home life and a hectic work schedule I reached a situation whereby I was functioning poorly with both. I’d missed a couple of VAT payments and had intended to catch up at the end of the year. I missed my own deadlines and tried again to catch-up in the following year. Business became a stressful job of ‘fire-fighting’ each day’s demands, eventually pushing the issue of outstanding taxes out of my mind as much as possible, in order to concentrate on work.

That said, you always know in the back of your mind that these things don’t just go away and that it was just a matter of time before ‘they’ catch up with you. 

After a few years of letting my compliance payments slide altogether, the Revenue made contact with me and gave me an estimate of all PAYE, VAT and tax owed over the years – which ran to over 6 figures- and they wanted the money immediately. I knew I was in big trouble and looked in the Golden pages for an accountant who could help me. The name www.fixmytax.com jumped out of the page and I made contact. I was immediately reassured that they could help me. I was asked for “every bit of paper” concerning the office and all old Revenue correspondence.

The first thing fixmytax.com was to do was make contact with the Revenue on my behalf and assure them that they were handling the situation and that the liabilities were being established, even though it would take time. That took the immediate ‘knock-at-the-door’ shock and worry out of the situation. The coming weeks were spent only dealing with fixmytax, (not the Revenue) answering the odd question by phone and filling in more information for the accountant. Even though this was routine information, I was quite reassured by the fact that they were working on the whole Revenue mess and actually sorting through it for me. This took the panic and stress out of the situation and enabled me to concentrate on work. After a few weeks, accounts and figures had been prepared, which I went over with the accountant.

The accountant had dealt with the Revenue directly on my behalf and he saved over 60% off the original tax bill.

Throughout the process, the fixmytax accountant was hugely supportive to me, dealt directly with the Revenue, reduced the original tax bill considerably and most importantly, had taken the fear out of the situation and given me peace of mind knowing that good progress was being made with the Revenue, rather than hiding from it all.

The cost? Approximately 7% of the money SAVED on the original tax bill!

My Revenue mess caused me huge amounts of anxiety all the time I did nothing to resolve it. In dealing with fixmytax, they took control of the situation and proceeded to do what had to be done. I would not hesitate to recommend them to anyone worried about any aspect of taxation and financial planning for a business.

I now have a good relationship with the Revenue, fixmytax looks after not only the basics of compliance, but also the financial planning and regularly reviews the performance of the business. My business is now stronger and more focussed that ever before simply because of the level of ongoing collaboration and support that I have with fixmytax. They are the proverbial “good accountant” that every business needs.

My most valuable lesson in dealing with fixmytax is that it is far more productive and far less stressful to get a good supportive accountant to do what they do best, leaving me free to do business. Thanks, Patrick!

Satisfied Client, name and address with firm. 

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