Taxes Consolidation Act 1997 section 705B

Conditions for notice under section 705E

Section 705B sets out the conditions that must be stated in the notice to Revenue for a company or group to qualify as a Real Estate Investment Trust (REIT) or group REIT.

• The REIT or principal company of a group REIT must be Irish-resident, Irish-incorporated, listed on a recognised EU stock exchange, and must not be a close company throughout the specified accounting period.
• By the end of that accounting period, at least 75% of income must derive from property rental business, the portfolio must contain at least three properties with no single property exceeding 40% of total market value, a financing costs ratio of at least 1.25:1 must be maintained, at least 75% of assets by market value must relate to the rental business, specified debt must not exceed 50% of total asset value, and at least 85% of property income must be distributed as dividends by the return filing date.
• The stock exchange listing requirement, the close company restriction, and the three-property diversification rule are each treated as satisfied if met within three years of the company or group becoming a REIT.
• The close company restriction does not apply where the REIT or group REIT is under the control of qualifying investors.