The Irish Investor’s Guide to International Property Diversification

Introduction

Irish investors have long been drawn to overseas property – from the sun‑kissed coasts of Spain to the bustling suburbs of the United States. In 2024, Irish buyers spent €2,409 per square metre on Spanish homes, while the total turnover of Irish investment property at home topped €2.5 billion. These figures illustrate both a strong appetite for property and a growing need to spread risk beyond the Irish market.

This guide outlines the why, where and how of international property diversification for Irish investors. It combines the latest statistics, tax and financing insights, and a step‑by‑step framework to help you make confident, profitable decisions in 2024‑2025.

1. Why Diversify Internationally?

Reason	What it means for Irish investors
Risk mitigation	Property cycles differ across regions; a downturn in Dublin does not automatically affect a holiday villa in the Algarve.
Currency hedging	Holding assets in euros, dollars, pounds or other currencies can offset fluctuations in the Euro against the Irish pound (GBP) and the US dollar.
Higher yields	Rental yields in Spain (5‑7 %) and Portugal (6‑8 %) often exceed the 4‑5 % typical of Irish residential rentals.
Capital growth potential	Emerging markets such as Greece and Croatia have posted double‑digit price growth over the past five years.
Lifestyle & retirement	Many Irish investors combine an investment with a personal second home, creating a “use‑and‑let” model that maximises utility.
Tax optimisation	Certain jurisdictions offer favourable tax regimes for non‑resident owners (e.g., Portugal’s Non‑Habitual Resident (NHR) scheme).

2. Key Considerations Before Buying Abroad

2.1 Tax Implications

Issue	Irish perspective	Typical foreign regime
Income tax on rentals	Irish residents are taxed on worldwide rental income (standard rates 20 %‑40 %).	Many EU countries levy a flat 28 %‑35 % on non‑resident rental income, but often allow deductions for expenses and mortgage interest.
Capital Gains Tax (CGT)	33 % on gains (with annual exemption €1,270).	Portugal: 28 % on gains for non‑residents; Spain: 19 %‑23 % depending on gain size; US: 15 %‑20 % for foreign sellers.
Double‑Tax Treaties	Ireland has treaties with most EU states, the US, Canada, etc., preventing double taxation.	Always confirm treaty relief; a local tax adviser can file for credit in Ireland.
Inheritance & Gift Tax	33 % (with thresholds).	Some countries (e.g., Portugal) have no inheritance tax on property for direct heirs.

Tip: Use a dual‑tax professional (Irish and local) to structure the purchase through a company or trust where advantageous.

2.2 Financing Options

Source	Typical terms for Irish buyers
Irish banks (cross‑border loans)	Up to 60 % LTV, 3‑5 % fixed rates for EU properties, 5‑7 % for US assets.
Local banks	70‑80 % LTV in Spain & Portugal, often lower rates (2‑3 % fixed) but require local residency or a Spanish/Portuguese tax number.
International mortgage specialists	Offer multi‑currency mortgages (euro‑dollar swaps) to lock exchange risk.
Cash purchases	Popular for high‑value US properties; avoids foreign exchange fees and simplifies closing.

2.3 Legal & Title Issues

Title insurance – advisable in Spain and Portugal where “registro de la propiedad” guarantees ownership.
Notary involvement – mandatory in most EU countries; the notary conducts due‑diligence and registers the deed.
Ownership structures – buying through a private limited company (LLC) can limit personal liability and simplify succession planning.

2.4 Currency & Exchange Risk

Forward contracts – lock in a euro‑to‑dollar rate for up to 12 months.
Currency‑linked mortgages – some lenders allow repayments in euros while the loan is denominated in dollars.
Diversify holdings – holding assets in at least two currencies reduces exposure to a single swing.

3. Top Markets for Irish Investors in 2024‑2025

3.1 Spain – The Proven Performer

Sales volume: 2,307 Irish‑buyer transactions in 2024 (≈ 0.017 % of all foreign sales).
Residency split: 73 % non‑resident (holiday homes/investment), 27 % Irish expats living in Spain.
Average price: €2,409 / m² (↑ 11 % YoY).
Key regions: Costa del Sol, Costa Blanca, Balearic Islands.
Why it works: Strong rental demand from British and German tourists, stable legal framework, and favourable mortgage rates (2‑3 % fixed).

Case in point: An Irish couple bought a two‑bedroom apartment in Marbella for €320,000 in 2023, achieving a 6 % gross rental yield after the 2024 tourism rebound.

3.2 Portugal – The Tax‑Friendly Alternative

Foreign buyer share: €3.6 bn of €28 bn total sales in 2023 (≈ 13 %).
Regional focus: Algarve accounted for 29.9 % of foreign purchases, with 27 % of transactions and 38 % of total value.
Average foreign price: €276,897 (EU buyers) – significantly above resident price (€194k).
Key incentives: Non‑Habitual Resident (NHR) tax regime (10 % flat tax on foreign income for ten years) and Golden Visa (property ≥ €500k).
Top locales: Lagos, Albufeira, Vilamoura, Lisbon’s historic centre.

Tip: Use a Portuguese “empresa unipessoal” to own the property; profits can be repatriated tax‑efficiently under the NHR scheme.

3.3 France – The Stable, High‑Value Market

Foreign buyer share: ~12 % of total transactions (latest INSEE data).
Irish ranking: Ireland is among the top five EU nationalities buying in the French Riviera and Dordogne.
Price trends: 2024 saw a modest 2.5 % price increase nationally; luxury markets (Côte d’Azur) rose 4‑5 %.
Yield outlook: 3‑4 % in major cities, 5‑6 % in secondary towns (e.g., Montpellier, Lyon suburbs).
Why consider France: Strong capital protection, robust legal system, and a large English‑speaking expat community.

3.4 United States – High‑Growth, High‑Reward

International buyer spend: $56 bn (Apr 2024‑Mar 2025) across the US, with Irish investors among the top 10 nationalities.
Hot states for Irish buyers: Florida (Miami, Orlando), Texas (Austin, Dallas), California (Los Angeles, San Diego).
Average price per transaction for foreign buyers: $550,000 (≈ €520,000).
Rental yields: 5‑8 % in Sun Belt cities, driven by short‑term vacation rentals.
Tax note: The US imposes a 30 % withholding tax on gross rental income for non‑resident aliens, but treaty relief can reduce this to 15 % after filing Form 1040‑NR.

3.5 Emerging Opportunities – Italy, Greece & Croatia

Country	2024 foreign buyer share	Typical yield	Notable hotspots
Italy	9 % of total sales	4‑5 %	Tuscany, Puglia, Lake Garda
Greece	11 % (post‑Golden Visa)	6‑7 %	Crete, Peloponnese, Athens suburbs
Croatia	6 % (EU‑focused)	5‑6 %	Dubrovnik, Istria, Split

These markets benefit from lower entry prices and tourism‑driven demand, making them attractive for first‑time overseas investors.

4. Practical Steps to Purchase Property Abroad

Define objectives – rental income, capital growth, lifestyle use, or a mix.
Select the market – use the data above to match your risk‑return profile.
Conduct due‑diligence
- Verify title, planning permission, and any encumbrances.
- Review local rental regulations (e.g., Spain’s “licencia de alquiler turístico”).
- Check the property’s energy performance certificate (EPC) – mandatory in the EU.
Engage local experts – solicitor/notary, tax adviser, and a reputable estate agent with a track record of serving Irish buyers.
Arrange financing – obtain pre‑approval from your Irish bank and compare local mortgage offers. Consider a currency‑hedged loan if buying in dollars.
Structure ownership – decide between personal name, Irish LLC, or local company. Factor in succession planning and possible future sale.
Execute the purchase – sign the pre‑contract (arras), pay deposit (usually 10 %), and schedule the notarial deed.
- For EU purchases, the notary registers the deed within 30 days, after which you receive the title.
Register for tax – obtain a local tax identification number (NIE in Spain, NIF in Portugal) and register the property with the local tax office.
Set up property management – hire a local managing agent for rentals, maintenance, and compliance.
Monitor performance – review rental yields, occupancy, and currency exposure quarterly; adjust strategy as needed.

5. Risk Management for Irish Overseas Investors

Risk	Mitigation
Currency volatility	Forward contracts, multi‑currency mortgages, diversify across euros and dollars.
Regulatory changes	Stay updated via local legal counsel; subscribe to market newsletters (e.g., Spanish Property Insight).
Liquidity constraints	Keep a cash reserve of at least 6 months of mortgage payments and operating costs.
Political/economic instability	Prioritise EU markets with strong rule‑of‑law; avoid regions with high geopolitical risk.
Rental market downturn	Opt for mixed‑use properties (short‑term + long‑term) and maintain high‑quality furnishings to attract premium tenants.

6. Snapshot Case Study – Irish Investor in the Algarve

Investor: Sean O’Leary, Dublin, 45 y/o, software executive.
Goal: Combine retirement home with short‑term rental income.
Purchase (2023): €495,000 three‑bedroom villa in Lagos, Algarve – 2,050 m² land, sea view.
Financing: 70 % local Portuguese mortgage at 2.9 % fixed for 5 years; €150,000 cash deposit.
Tax structure: Owned through a Portuguese “Sociedade Unipessoal por Quotas” to benefit from the NHR regime (10 % flat tax on foreign rental income).
Performance (2024): Gross rental yield 6.8 % (average €3,300/month during high season, €1,200/month off‑season). Capital appreciation 4.2 % YoY.
Key take‑away: Leveraging the NHR tax regime and a local mortgage reduced financing costs, while the high‑season rental market delivered strong cash flow.

Conclusion

International property offers Irish investors a powerful avenue to diversify risk, boost yields, and enjoy lifestyle benefits. The data from 2024 shows steady Irish activity in Spain (2,307 sales, €2,409 / m²), significant Portuguese foreign‑buyer presence (29.9 % in the Algarve), and growing interest in the United States (US$56 bn foreign purchases). By understanding tax implications, securing appropriate financing, and partnering with trusted local professionals, you can turn an overseas property into a resilient component of your investment portfolio.

Whether you’re eyeing a sunny villa in the Algarve, a boutique apartment on the French Riviera, or a rental property in Florida, the steps outlined in this guide will help you navigate the complexities and capture the rewards of international real estate. Diversify wisely, monitor markets closely, and let your Irish investment ambitions thrive across borders.