We set out below the text of a guide to the purchase of property in Ireland which we have prepared and which describes the position as of 1st May 2003

Duncan Grehan & Partners are a firm of Irish Solicitors based in Dublin, bonded and licensed to provide legal advice on all aspects of Irish law in all counties in the Republic of Ireland. We are especially experienced in advising persons buying Irish property from abroad and we have encountered and dealt with most of the pitfalls. We would be pleased to advise you on all aspects of purchasing or selling properties of a commercial, residential or agricultural nature anywhere in Ireland.

When purchasing or selling property in Ireland the buyer and the seller each employ their own solicitor. A purchaser should always retain a solicitor who is independent of and not associated with the solicitor acting for the seller or the seller's estate agent.

We will negotiate on your behalf in the purchase of properties, and can introduce you to architects, surveyors, accountants and managers of banks or other lending institutions and insurers. We will complete all legal formalities necessary to ensure that you acquire good and marketable title in your Irish property.

Before you agree or contract to buy or sell any property in Ireland you should first of all contact us so that we can assess the proposals on your behalf and ensure that your interests are properly protected.

We would draw your attention to the following four points:

1. The Procedure
There are 3 stages at each of which we will assist:

a) Negotiations on the price, the deposit, the date when you can take possession ("the completion date") and any special contract conditions (such as a satisfactory architect's report on the property structure and building, and on planning and bye-law permissions or the making of the sale subject to loan approval).
b) The signing of the contract to purchase and the payment of the deposit on the purchase price.
c) Completion, transfer and registration of ownership:
The balance of the purchase monies are only paid over to the seller when we are satisfied that you will acquire good and marketable title to the property. This is normally some 4-6 weeks after contracts are signed:

2. Insurance
Having signed contracts to purchase or on completion, we can assist you in seeking the necessary proper insurance cover.

3. Testaments/ Wills
We can also advise you on the drafting and execution of a Will to provide for the disposal of your new property on your death taking into account the Irish law requirements for a valid Will and issues of taxation.

4. Taxes
Rates of tax change from year to year. You should contact us for specific advice and consult the Irish tax authority site at www.revenue.ie

a)Stamp Duty

The rates of duty for first time buyers have been reduced for deeds of conveyance or transfer executed on or after 2 December 2004 (see below). A first time buyer is someone who has not previously bought or built a house in Ireland or abroad and they must intend to live in the property as their main residence)

New Houses / Apartments

• Floor Area under 125 sq. m

New houses / apartments purchased by an owner occupier / first-time buyer with a valid floor area certificate stating that the total floor area of the house / apartment does not exceed 125 square metres are exempt from stamp duty.

• Floor Area over 125 sq. m

New houses or apartments purchased by an owner occupier / first time buyer with a total floor area exceeding 125 square metres are liable for stamp duty, at the appropriate rate as per the above table, on either the value of the site (excluding VAT) or one quarter of the total value of the house including the value of the site (excluding VAT), whichever is the greater. The size of the floor area must be certified by a qualified architect, engineer or surveyor.

For further information on the above please contact us.

b) Income Tax
All rents or income arising from the property for the benefit of an owner who is not resident in Ireland are taxed at the rate of 22%. Where the owner requires such income to be paid to him abroad the tax should be deducted from any rent due by the tenant and paid directly to the Irish Revenue Commissioners. If an owner becomes resident for tax purposes in Ireland, then his income will be taxed at between 22% to 44% subject to personal tax allowances and an allowance for tax already paid in the UK.

c) Capital Acquisitions Tax/Inheritance Tax
These taxes only arise where a person has become domiciled in Ireland for tax purposes. This would involve a person coming to Ireland and residing here permanently with the intention that all his tax affairs are to be regulated by the Irish authorities.
Examples
I. Between husband/wife: no tax, no limit.
II. Inheritance by a child from any parent or by any parent from his child: the first € 441,198.00 is tax free.
III. Inheritance by grandchildren, brothers and sisters, nieces and nephews: the first € 44,120.00 is tax free.
IV. No family relation: the first €22,060.00 is tax free.
The tax free thresholds generally are increased in April each year. The tax rate is currently 20% of the taxable value of a gift or inheritance.

d) Capital Gains Tax (payable on a sale of property)
A person who is not resident in Ireland for tax purposes will pay Capital Gains Tax on any gain or profit made on the sale or disposal of his Irish property. This tax is calculated on the profit made on the sale, that is, on the difference between the original purchase price and the sale price. The tax payable on the profit will be reduced by changes in the consumer price index. However, where a person becomes "resident" for tax purposes in Ireland no tax whatsoever is payable on the profit from the sale of his principal private residence and up to 1 acre.

e) Residential Property Tax
Residential Property Tax was abolished in the government's budget for 1997. Buyers will still require to see the tax clearance certificate from sellers in appropriate cases.

f) Rates (taxes to local government authorities)
There are no rates on residential or agricultural property. Rates are payable on commercial properties such as office blocks, shops, car parks etc. The amount varies from county to county and is fixed on a yearly basis.

g) Local Service Charges
In some counties water rates are chargeable. These would not exceed € 60 - €120 per annum. EU law will shortly require all water charges to be abolished.

Should you require our advice in relation to the purchase of property in Ireland we would be delighted to help you on a professional, competitive basis. If you wish to avail of our services or require any further information, please send us an e-mail with, your name, address and telephone/telefax number or ring us at +353-1-6779078.