Dáil Éireann Debate, Thursday - 5 October 2023
136. Deputy Richard Boyd Barrett asked the Minister for Finance if he is considering any changes to the tax treatment of REITs and other property-related investment vehicles in budget 2024; and if he will make a statement on the matter. [43151/23]
View answerAs part of its 2022 Report, the Commission on Taxation and Welfare recommended that a review of both the Real Estate Investment Trust and Irish Real Estate Fund tax regimes with regard to institutional investment in the Irish property market should be undertaken. This recommendation has been incorporated into the Terms of Reference for the “Funds Sector 2030” Review which were published on 6 April this year.
In line with the Terms of Reference, the Funds Review will consider:
“an examination of the regimes for Real Estate Investment Trusts (REITs) the Irish Real Estate Funds (IREFs) and their role in the property sector, including how they support housing policy objectives”.
A multi-disciplinary Review Team, made up of Department of Finance and Central Bank of Ireland officials, has been established. The Review Team, led by the Department of Finance, will also work closely with the Revenue Commissioners. A public consultation was launched in late June with a deadline of 15 September which has now passed. In addition to this consultation exercise, there will be extensive direct engagement with relevant public sector and private sector stakeholders throughout the period of the Review.
As this review process is ongoing, it is unlikely that any changes will be made in 2023. It is considered prudent to await the outcome of the review before announcing any further changes to the regimes.
