‘Forward funding’ model enabling funds to avoid higher taxes
Department of Finance officials have found that if institutional investors ‘forward fund’ residential developments, they can avoid stamp duty charges on residential blocks because the property never technically changes hands
Institutional funds pumping billions of euro into “forward funding” Irish residential developments can avoid paying stamp duty and ultimately circumvent the higher levy rate imposed on investors that bulk-buy houses, Department of Finance officials found last year.
In Ireland, investment funds have typically entered “forward purchase” agreements with developers to buy residential developments upon completion. New data from Sherry FitzGerald has shown a different “forward funding” model has become more prevalent, which involves institutional funds ...