Buy-to-Let Investment Properties

Looking to invest in property? Our financial advisors provide expert guidance on all aspects of buy-to-let mortgages and investment property financing in Ireland.

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Key Considerations

1

Pros & Cons of Individual v Company (SPV) purchase for rates, tax treatment, etc.

2

Lender product offerings, rates, and pros and cons of Interest Only v Capital & Interest repayments

3

Costs ie Stamp duty, legal fees, valuation fee and structural survey, bank application fees

4

Rental income cover: How lenders will underwrite

5

Age limits when buying through an SPV

6

Rental Income requirements for investment proposals

Frequently Asked Questions

The standard maximum LTV for buy-to-let investment properties in Ireland is 70%, as per Central Bank of Ireland restrictions. This means you will typically need a minimum 30% deposit. Banks are not permitted to extend mortgage loans exceeding this LTV for investment properties.

Lenders typically require that the projected rental income covers a multiple of the mortgage repayments, commonly between 120% to 145% of the monthly mortgage interest. This rental income cover ensures the property generates sufficient income to sustain the mortgage repayments and associated costs, even with potential vacancy periods.

This depends on your circumstances. Individual ownership offers simplicity but rental income is taxed at your personal income tax rate (up to 55% for higher earners). A Company/SPV structure offers rental income taxed at the corporate rate of 25%, with full mortgage interest deductibility and limited liability. However, SPVs involve higher setup costs, ongoing compliance requirements, and potential personal guarantee requirements from lenders. Our advisors can help assess which structure best suits your situation.