The authorities have designated many 'Inner City' areas, particularly along the banks of the River Liffey, as tax incentive areas for the purpose of redevelopment. These tax incentives apply to development/construction activities and also to the rental income of subsequent purchasers in the case of both commercial and residential properties.
On very high profile development in a designated area is the International Financial Services Centre. Situated on the north bank of the River Liffey beside the Custom House and main bus terminal, the I.F.S.C. houses the trading divisions of many large Irish and international financial institutions along with other allied businesses. There is a substantial residential development element in the I.F.S.C. area and the centre itself provides a large pool of quality tenants.
The tax incentives are designed primarily to encourage urban renewal and the renovation of, in some cases, run down or derelict inner city areas. They are also designed to encourage the building of reasonably priced rental accommodation for young homemakers who, for any number of reasons, do not wish actually purchase.
Designated (tax incentive) areas can truly be said to be changing the face of Dublin city centre. They could be compared to the Docklands Development in London but with a great deal more charm and character.
If any of my clients require detailed analysis of the tax implications for them of purchasing in one of the designated areas, I arrange an exploratory meeting with an accountant with expertise in this area.