Overseas funds paid 1.37% tax on IREF income after clampdown

Irish Times | Jan 16, 2020 at 5:40 AM
  • Overseas investors that snapped up Irish property assets following the crash and put them into ultra-tax-efficient fund structures paid an effective rate of just 1.37 per cent on income following a Government effort to reel them into the tax net in 2017.
  • It imposed a dividend withholding tax – then levied at a 20 per cent rate, but subsequently increased to 25 per cent – on IREF investor distributions.
  • It subsequently emerged that investment firms behind IREFs resorted increasingly to extracting money from these funds by providing them with large shareholder loans with high interest payments, rather than by taking dividends on income.