Contributor: Charlotte Cumiskey, Director, Real Estate Tax, BDO
Housing should remain a key focus of Budget 2027. While a range of measures have been introduced to support housing delivery, supply continues to fall materially short of demand. The resulting affordability and availability challenges are having significant social and economic consequences and are increasingly impacting Ireland's ability to attract and retain talent, support labour mobility and maintain competitiveness.
The enhanced corporation tax deduction introduced for qualifying apartment developments was a welcome recognition of the viability challenges facing the apartment sector. Apartments will play a critical role in meeting Ireland's future housing needs and supporting sustainable urban development. As this measure begins to take effect, the Government should continue to engage with industry stakeholders to ensure that the tax system remains responsive to the commercial realities of residential development and supports the delivery of viable projects.
In addition, consideration should be given to measures that facilitate downsizing or rightsizing by homeowners. A targeted stamp duty relief for individuals moving to smaller, more suitable homes could help improve housing mobility, release larger family homes back into the market and promote a more efficient use of existing housing stock.
Attention should also be given to the continued pressures within the private rental sector. The ongoing exit of private landlords from the market has further constrained rental supply at a time of sustained demand. Budget 2027 should consider targeted and balanced reforms to the taxation of rental income that encourage the retention of existing rental accommodation and support long-term investment in the sector.
Overall, tax policy should support the twin objectives of increasing housing supply and maintaining rental stock. A clear, predictable and competitive tax environment will be critical in attracting the long-term investment needed to address Ireland's housing challenges and support sustainable economic growth.
Content adapted from Finance Dublin Irish Tax Monitor.