Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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200. To ask the Minister for Finance the research that has been carried out into the occupancy of properties owned by REITs for which they are claiming exemption from corporation tax for the past ten years; and if he will make a statement on the matter. [56205/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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A Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. The function of the REIT framework is to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle.

The Department of Finance has not undertaken research into the occupancy of properties owned by REITs, I am also informed that the Department of Housing, Local Government and Heritage have not yet conducted research into the occupancy rates of REITs.

Given the important implications that developments in the property market can have for the economy, the Department of Finance actively monitors developments in this sector on an ongoing basis, and research on other aspects of the market has been carried out and published.

- In February 2019 the Economic Division of the Department published a paper on Institutional Investment in the Housing Market.

- In July 2019 officials in the Tax Division of the Department produced a report on Real Estate Investment Trusts (REITs), Irish Real Estate Funds (IREFs) and Section 110 companies with respect to their investment in the Irish property market in 2019. The report was presented to the Tax Strategy Group and provided a basis for policy discussions and led to a number of amendments in Finance Act 2019 to ensure that the regimes are robust and operate as intended.

The Commission on Taxation and Welfare published its report “Foundations for the Future” on 14 September 2022. The Commission recommended that the Government undertake a review of REITs and IREFs, having regard to the role of institutional investment in the Irish property market. As the Deputy will be aware, I welcomed this recommendation as part of my recent Budget speech and committed to undertaking a review. Institutional investment has played a key role in the provision of housing in recent years. It is important to consider how best these structures can continue to support our housing policy objectives. The parameters of this review and timelines have yet to be decided, but I expect it will commence early in the new year.