As property investment in Ireland becomes more sophisticated, many investors—both local and international—are exploring the use of SPVs (Special Purpose Vehicles) when purchasing property. But is setting up an SPV the right move for you?
In this post, we’ll break down what an SPV is, who it suits, the tax and legal implications, and the pros and cons—so you can decide with confidence.
An SPV (Special Purpose Vehicle) is a limited company created for a specific purpose—most commonly, holding or developing a property. While it introduces some complexity and cost, an SPV can offer advantages in terms of liability, tax treatment, and long-term flexibility.
An SPV isn’t just for large-scale developers. It may suit you if:
You’re building a property portfolio: An SPV helps keep liabilities for each property separate. If legal or financial issues arise with one, they don’t impact the others.
You’re buying with a partner: Joint ventures—whether with a sibling, friend, or business partner—benefit from clear ownership structures and profit-sharing agreements.
You’re investing from overseas: Foreign investors can simplify Irish property ownership, tax planning, and repatriation of profits via an SPV.
You’re planning ahead for resale or inheritance: SPVs can create flexibility in exit strategies and future-proof your investment.
There are a few tax-related reasons SPVs are attractive for property investors:
Rental income within a company is taxed at 25%, but full mortgage interest and other property-related expenses can usually be deducted.
When selling, you may choose to sell shares in the company (instead of the property), reducing stamp duty to 1% (compared to 7.5% on commercial property).
Note: These benefits do not apply to personal homes or small-scale, single-property investments.
Using an SPV isn’t always worth it. Here are some of the downsides to be aware of:
Higher running costs: You’ll need to file annual accounts, pay accountancy fees, register for taxes, and comply with Companies Registration Office (CRO) requirements.
Limited access to personal tax reliefs: If you’re buying a home to live in, using an SPV means losing access to reliefs like Principal Private Residence Relief (PPR).
Potential lending challenges: Banks are often cautious about lending to new SPVs and may require personal guarantees from directors.
Running an SPV comes with specific obligations, including:
Registering for corporation tax (and possibly VAT)
Filing annual returns with the CRO
Maintaining proper financial records
Ensuring at least one company director is resident in Ireland and earning a minimum of €40,000 annually
Some investors use one SPV for their entire portfolio, while others set up a separate SPV per property. The best approach depends on your goals and appetite for admin.
Ask yourself:
Am I buying alone or with others?
Will I own multiple investment properties?
Am I investing from abroad?
Do I want to reduce future tax liabilities or simplify inheritance planning?
If the answer to several of these is yes, an SPV may be a smart structure to consider. If not, and you’re only purchasing one or two buy-to-lets or a home to live in, the traditional route is likely simpler and more cost-effective.
An SPV can offer flexibility, tax efficiency, and protection—but only when the scale and complexity of your investment justifies it. For professional landlords, joint ventures, and overseas investors, SPVs often make sense. For others, they may be more hassle than they’re worth.
Always speak with a solicitor or tax advisor before setting up an SPV. The structure should work for your goals—not the other way around.
Need Property Investment Advice?
Mortgage Navigators works with property investors across Ireland and abroad. If you’re considering investing via an SPV or need help financing your next purchase, talk to our expert advisors.
Article by Margaret Barrett
Managing Director at Mortgage Navigators,