Commercial Property Gets A Boost

Double Boost for Commercial Property

The 2011 Budget surprised most observers with an imaginative shot in the arm that will assist beleaguered owners who bought at the peak - and will incentivise those considering buying commercial property in Ireland.

Basically, a property bought between 2005 and 2008, which is bought by a new owner between now and the end of 2013 AND which is held for 7 years by the new owner will be exempt from Capital Gains Tax on the amount of appreciation for that period. CGT is now 30% so this would represent a significant saving. 

Stamp duty on non-residential property has been decreased from 6% to 2%, again a very significant saving.

Either of these measures is a welcome potential boost to the market, taken together they could prove to be a significant incentive to foreign and local investors. We would expect to see increased activity in commercial property in Dublin and other main cities once the festive season is behind us.

Gerry Grimes is a Director of PropertyforPeople.ie, a Dublin based Sales, Lettings & Management and Employee Relocation Company. gerry@propertyforpeople.ie. Credit to Liam Grimes of KPMG & the Irish Independent, 8 Dec 2011.