The Rural Independents group of TDs is calling for a ban on foreign-based entities and investment funds buying land or other property in Ireland.
In a submission to the government ahead of Budget 2025 next week, the group proposed that, from January 1, foreign persons or entities would only be able to buy property, including land, in Ireland for their main residence of business if they meet a set of criteria.
These criteria would be: have previously lived in Ireland for at least five years; are citizens of the EU and work in Ireland; are citizens of a non-EU country with a valid permit to stay or do business in Ireland.
Commenting on this proposal, Rural Independent group member Mattie McGrath said: “Currently, investment funds that engage in bulk purchases of 10 or more properties face a 10% stamp duty rate, which had proven insufficient.
“Since 2021, bulk purchasing has increased by 233%, with four in 10 new homes in 2023 bought by bulk buyers. The tax only applies to homes, not apartments, and homes leased back to the state for social housing are exempt.
“An outright ban on bulk purchasing by foreign-domiciled funds is now required. Our policy proposal also applies to public companies established in Ireland but controlled by foreigners,” McGrath said.
Elsewhere in the Rural Independents’ budget submission – which is focused on rural Ireland – the group called for funding for road improvement.
According to the group, the approach of Minister for Transport Eamon Ryan has not adequately provided for the upkeep of roads in rural areas.
Another member of the group, Michael Healy-Rae, said: “Minister Eamon Ryan’s approach has stymied necessary investments, leaving local authorities struggling to maintain basic road infrastructure.
“A well-maintained road network is essential for regional connectivity and economic growth.”
The group also called for a reduction in the Carbon Tax and VAT on fuel, saying that these taxes place a burden on rural residents.
Deputy Danny Healy-Rae said: “The government’s fiscal mismanagement, exemplified by overruns in projects like the National Children’s Hospital, highlights the need for stringent oversight and accountability.
“We must ensure taxpayer funds are used to deliver tangible benefits to our communities.”
Other key asks in the submission include a €2 billion increase in mental health funding to address “chronic underfunding” and “ensure timely access to service”.
“The unacceptable reality of having one million people on healthcare waiting lists demands urgent action. We need a strategic increase in the healthcare workforce, particularly in rural areas where the shortage of GPs and dentists is acute,” McGrath said.
The group is also calling for increased social and affordable housing supply, incorporating a total construction of up to 60,000 new units per year.
Deputy Carol Nolan said: “The human cost of the housing crisis is immense. We must accelerate the overall construction of houses, including building more social and affordable housing units to reduce waiting lists.”