What costs are involved in switching to a cheaper lender?
  1. As a general rule you should budget 1000 euro plus vat to cover legal and remortgage arrangement fees.
  2. A typical valuation fee is 150 euro.
  3. If you are currently in a fixed rate agreement there is a possibility of a break fee and you should ask your mortgage lender to  send you  a redemption figure.  It is important to get this figure in writing.

Please review our switch and save calculator to calculate if there are savings available through switching.
What are the maximum loan to values currently available?

In 2008 many lenders significantly pulled back on their investor mortgage offerings.Loan to value limits are down to 80%with some lenders with only one lender currently offering 85% to first time investors.
The standard ltv for experienced investors is now 75%
This is similar to a scenario that existed over10 years ago. It will impact on the price of investment properties ,by taking many would be investors out of the market.

What tax is payable?
1. Stamp Duty

Stamp Duty is payable on the purchase of  investment properties in Ireland. 
To estimate your stamp duty liability please click on the stamp duty calculator.

2. Capital Gains Tax

  • Irish residents are exempt from capital gains tax on disposal of their principal private residence
  • Generally capital gains tax on the disposal of other properties attracts a rate of 20% (other than development land which may attract a high rate).

3. Rental Income

Rental income from property is taxable at the appropriate taxation rate. Interest payable on related borrowings to purchase property is available as a deduction when computing taxable income.
Other operating expenses associated with the property rental( eg management fees) and insurance is also allowed as adeduction when computing tax liability.
Taxation is payable on acurrent year basis in Ireland usually on 31/10  each year.

It is advisable that clients seek independent taxation advice in the event of purchasing a property in Ireland. The above is a general summary of the principal taxes and should not be taken as advice. Should you wish Mortgage Company of Ireland to recommend a taxation advisor we would be pleased to do so.