Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Institutional investment has had a role to play in the supply of both commercial and residential property. In particular, it has played a role in the increased provision of apartments in recent years. Rebuilding Ireland identified the encouragement of the build-to-rent sector as a key priority in improving the supply of accommodation in urban areas and encouraging professionalisation of our rental sector. However, where such investment brings profit, a fair share of tax must be paid.

Senators will be aware that in 2019, officials in my Department produced a report on the operation of REITs, IREFs and section 110 companies. The report was presented to the tax strategy group and published in July 2019. It led to a number of changes I made in the Finance Act 2019.

As part of my recent budget speech, I welcomed the recommendation of the Commission on Taxation and Welfare that a review be undertaken of the REIT and IREF regimes. Both regimes have played an important role but it is timely to commence a review to take stock of the impact of both structures on the property market and how best they can continue to support housing policy objectives. The parameters of the review have yet to be decided but I expect it will commence early in the new year. Given that I have already instructed my officials to carry out a review in this area, I cannot accept the recommendation.