Non-Resident investing via an Irish company

[CourtMatrix]

I'm no longer resident in Ireland and am likely to be abroad for the foreseeable future. I live in a country that has a double taxation treaty with Ireland, but no income tax.

I'm thinking of buying a few apartments in Dublin for renting out, using a combination of my own cash and bank borrowings. The intention is that the borrowings should be repaid in 10-12 years and that the rental income will be available to me in my retirement - which is unlikely to be in Ireland, but may be somewhere within the EU. The reason why I am buying in Ireland as opposed to elsewhere is that I know the market better in Ireland and I also understand the legal framework.

I'm wondering if I should incorporate a company in Ireland and buy the investment properties through it. I'd be grateful for any steers on the pros/cons of doing this versus buying in my own name. I know this query is a bit vague but I'm happy to answer any questions that would help.

 

[Nige]

How much income do you think you'll make from it?

A company will pay tax at 25% (with a surcharge to bring that up to 40% if you don't pay the net income out in dividends to yourself).

A non-resident individual will pay tax at 20% up to €32,800 plus USC of up to 7%.

 

[CourtMatrix]

How much income do you think you'll make from it?

A company will pay tax at 25% (with a surcharge to bring that up to 40% if you don't pay the net income out in dividends to yourself).

A non-resident individual will pay tax at 20% up to €32,800 plus USC of up to 7%.

Lets assume that I buy 4 x 1-bed apartments around the Dublin 8 area at approx. €100,000 each. I could put in up to 50% in cash and borrow the balance, though if I could borrow 75% I would probably go for that. I'm guessing the apartments could be rented our for about €500pm.

Bank of Ireland's buy-to-let calculator shows the cost of a capital and interest mortgage of €200,000 over 10 years at €2,325.21, so I would obviously have to fund the difference.