Liam Quaide (Cork East, Social Democrats)
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37. To ask the Minister for Finance the estimated number of real estate investment trusts in Ireland; the rate of effective corporation tax paid by such entities; and if he will make a statement on the matter. [24518/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The rules relating to Real Estate Investment Trusts (REITs) in Ireland are contained in Part 25A of the Taxes Consolidation Act 1997. The purpose of the REIT regime is to allow for a collective investment vehicle which provides a comparable after-tax return to investors as direct investment in rental property, by eliminating the double layer of taxation at corporate and shareholder level which would otherwise apply on a property investment via a corporate vehicle.

A REIT is generally exempt from corporation tax on the income and gains from its property rental business, which are instead taxed in the hands of the investor, provided the REIT distributes at least 85% of its property income.

In order to qualify as a REIT, a number of conditions must be satisfied including (but not limited to) the requirement that at least 75% of the aggregate income of the REIT must derive from its property rental business. The residual or non-property rental business is subject to corporation tax in the normal manner.

A further condition is the requirement for the REIT to be listed on the main market of an EU stock exchange within three years of becoming a REIT.

I am advised by Revenue that due to the small number (less than 10) of REITs that operate in Ireland and Revenue’s obligation to maintain the confidentiality of taxpayer information, specific information in relation to the precise number and the effective rate of corporation tax paid by these entities cannot be provided.

As publicly listed companies, REITs are required to publish information such as annual accounts online and these may be of assistance to the Deputy.