On 28 August 2026, Irish Revenue issued eBrief No. 124/26, an updated Guidance Note on the Irish Real Estate Fund (IREF) regime under Section 110A of the Taxes Consolidation Act 1997. The note clarifies the conditions for IREF qualification, including the asset test (at least 50% Irish real estate assets), the distribution requirement (90% of profits), and the prohibition on certain leverage. It also details the tax treatment of IREF distributions to investors (subject to 25% withholding tax unless exempt) and the annual reporting obligations via Form IREF1. The guidance applies to accounting periods commencing on or after 1 January 2026.
Key Takeaways
- Qualification Criteria: The fund must be widely held, regulated, and meet the 50% Irish real estate asset test at all times. Breach triggers loss of IREF status and potential tax liabilities.
- Distribution and Withholding Tax: Mandatory 90% distribution of taxable profits; distributions to non-exempt investors suffer 25% IREF withholding tax, creditable against recipient’s tax liability.
- Annual Reporting: IREFs must file Form IREF1 within nine months of the accounting period end, detailing assets, income, distributions, and investor details. Late filing incurs a €5,000 penalty.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement