www.citysquare.ie Section 23 Type Tax Incentives

tax saving opportunities
Tax savings are available to owner occupiers and investors in the form of
Section 23 type reliefs at City Square.
• Owners who live in the development pay reduced income tax on income
from all sources including PAYE income for 10 years
• Investors are entitled to a deduction from Irish Source rental income
equal to the ‘qualifying expenditure’ (see example below).
Benefits to Owner Occupier
If you work, you pay tax on your earnings. Large savings on income tax are
available if you buy and live at City Square. Also, you may not be aware of
the following benefits:
• Owners pay no stamp duty
• Owners get Mortgage Interest Relief on borrowings
• Owners may rent a room tax free up to €633 per month
The following three examples shows an owner earning €35,000 per
annum buying each type of unit:
SCENARIO 1 BED 2 BED 3 BED
Purchase Price €285,000 €360,000 €400,000
Qualifying cost – say 76.00% 76.00% 76.00%
Qualifying expenditure €216,600 €273,600 €304,000
Relief available on 50% €108,300 €136,800 €152,000
Amount available p.a. €10,830 €13,680 €15,200
BEFORE TAX RELIEF
Annual salary 35,000 35,000 35,000
Single person
First €34,000 @ 20.00% 6,800 6,800 6,800
Balance €1,000 @ 41.00% 410 410 410
7,210 7,210 7,210
LESS
Personal tax credit (1,760) (1,760) (1,760)
PAYE tax credit (1,760) (1,760) (1,760)
INCOME TAX 3,690 3,690 3,690
INCOME 35,000 35,000 35,000
RENT A ROOM 0 0 0
LESS TAX (3,690) (3,690) (3,690)
NET INCOME AFTER TAX 31,310 31,310 31,310
WITH TAX RELIEF
Annual salary 35,000 35,000 35,000
Less tax relief (above) (10,830) (13,680) (15,200)
TAXABLE INCOME 24,170 21,320 19,800
Single person
All income @ 20.00% 4,834 4,264 3,960
Balance €0 @ 41.00% 0 0 0
4,834 4,264 3,960
LESS
Personal tax credit (1,760) (1,760) (1,760)
PAYE tax credit (1,760) (1,760) (1,760)
INCOME TAX 1,314 744 440
INCOME 35,000 35,000 35,000
RENT A ROOM 0 7,596 7,596
LESS TAX (1,314) (744) (440)
NET INCOME AFTER TAX 33,686 41,852 42,156
SAVINGS
Tax 2,376 2,946 3,250
Rent a room 0 7,596 7,596
Total 2,376 10,542 10,846
2,376 10,542 10,846
• No Travel Costs
• No Travel Time
• No Traffic Jams!
Benefits to Investor
If you own other Irish investment property and you buy at City Square, you are
entitled to a deduction from Irish source rental income equal to the qualifying
expenditure. For example:
SCENARIO 1 BED 2 BED 3 BED
Purchase Price €285,000 €360,000 €400,000
Qualifying cost – say 76.00% 76.00% 76.00%
Qualifying expenditure €216,600 €273,600 €304,000
• These amounts are available as "S23" relief for offset against an Investors Irish source rental income only
• Please note that these are "specified reliefs" and restrictions will apply in 2007 and subsequent years, where an
investor wishes to claim more than €250k pa in "specified reliefs" in a year.
• Capital allowances are also available on fitout of unit
• Investors also have the benefit of mortgage interest relief on borrowings
All examples are for illustration purposes only - prices will vary throughout development