Property development combines land, planning, finance, design, construction, tax and sales risk. A profitable appraisal can change sharply when conditions, utilities, finance interest, VAT, delays or build costs are modelled correctly.
Irish developers often use limited companies and sometimes a separate special-purpose vehicle for a project. Incorporating a cheap company is straightforward; placing the right land, funding and contracts into it requires legal, tax and finance advice before acquisition.
- Common vehicle
- LTD or project SPV
- Planning
- Separate approval
- Construction tax
- RCT and VAT
- Basic LTD
- From EUR240
Start with a development appraisal, not a company shell
Model purchase price, stamp duty, legal and professional fees, surveys, planning, finance, levies, demolition, remediation, utilities, build cost, contingency, marketing, VAT, sales costs and time. Test downside cases for price, programme, interest and cost inflation. Include the cost of capital until every unit is sold.
Investigate title, rights, boundaries, services, zoning, planning history, environmental conditions and access before committing. Use conditions and due diligence appropriate to the site. A CRO number does not turn a weak site into a viable development.
Choose the company or SPV structure before acquisition
A project SPV can isolate records, investors and finance for one development, while a parent or management company may hold shared resources. Separate entities add accounting, governance, banking and tax costs. They do not automatically protect the group where guarantees, security or intercompany obligations connect them.
Agree investor shares, loan terms, decision rights, cost overruns, further funding, distributions, deadlock and exit before Form A1. Bespoke shareholder and loan documents need solicitors and tax advisers. Do not use a standard equal-share setup for a multi-million-euro project without analysing control and funding obligations.
| Question | Why it matters | Specialist input |
|---|---|---|
| Who buys the site? | Fixes title, debt and tax position | Property and tax advisers |
| Who funds overruns? | Prevents stalled projects and disputes | Shareholders agreement |
| What is the exit? | Sale of units, site or shares differ | Tax and legal review |
| Who guarantees debt? | Can create personal or group exposure | Finance legal advice |
| Who is principal contractor? | Controls RCT and construction duties | Tax and construction advice |
Form the project company accurately
The LTD needs a suitable name, Irish registered office, directors, secretary, shareholders, constitution and CRO identity details. The activity description should reflect the intended operation. Open dedicated banking and maintain board approval for acquisition, borrowing, major contracts and related-party transactions.
StartCompany.ie's Basic package starts at EUR240 with the CRO fee and core formation documents included for a straightforward LTD. A development SPV with external investors, preference rights, debt instruments or lender conditions normally needs bespoke legal drafting beyond that standard formation service.
Planning and building control remain separate
Assess the live planning regime, development plan, zoning, application route, conditions and appeal or judicial-review risk with qualified professionals. Do not describe a site as ready to build based only on informal discussions or a prior permission without checking duration, conditions and ownership facts.
Building control generally requires the appropriate Commencement Notice before work, with design, builder, assigned certifier and inspection documentation where applicable. Fire Safety, Disability Access and completion certificates may also be required. The BCMS records formal roles; appoint competent professionals and keep the entity names consistent.
Construction contracts, RCT and project governance
Use professional appointments and building contracts that define scope, price, programme, design responsibility, insurance, change, delay, defects, payment, security and termination. Confirm collateral warranties, bonds or guarantees required by lenders and purchasers. Verbal changes destroy cost control.
A development company paying construction subcontractors may be a principal contractor under RCT. Register and make contract and payment notifications through ROS. Construction VAT reverse charge and property VAT rules require specialist advice; do not infer treatment from a contractor's invoice alone.
Finance, tax and sales strategy
Register Corporation Tax, VAT, PAYE and RCT where applicable. Development profits, investment income, interest, land, share disposals and distributions can have different tax consequences. Model tax and cash timing before acquisition and before changing the exit route.
Lenders examine equity, planning, cost plans, contingencies, presales, guarantees and borrower experience. Maintain a monthly cost-to-complete report, approved variations and funding forecast. When selling units, align consumer, conveyancing, tax, title, snagging and completion processes with professional advice.
Property development company checklist
Treat company formation as one controlled workstream within the acquisition plan. Do not sign the site in a personal name expecting a cost-free transfer into the SPV later.
- Complete site, title, planning and environmental due diligence.
- Build base and downside appraisals with tax and finance costs.
- Agree investors, funding, guarantees, control and exit.
- Form the correct LTD or SPV with professional structuring advice.
- Acquire the site in the intended entity under advised terms.
- Appoint designers, certifiers, builder and other professionals.
- Complete planning, BCMS, tax, RCT and insurance requirements.
- Control cost-to-complete, variations, sales and compliance monthly.
Keep the company fee proportionate to the project
Form a straightforward project LTD from EUR240
StartCompany.ie can provide the affordable CRO formation and core documents. Use property, tax, planning and finance specialists for the acquisition, investor rights, lending and development approvals the project actually requires.
Official sources used for this guide
- Department of Housing: building control
- National Building Control Office: BCMS
- Revenue: Relevant Contracts Tax
- Revenue: VAT on property
Rules, fees and programmes can change. Check the current official guidance and obtain advice for the company's actual circumstances before acting.