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Growth of Irish Property in previously ultra tax-efficient funds slowed down

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The level of growth of Irish property in previously ultra tax-efficient funds slowed down in the first quarter of this year, following a clampdown on the use of such vehicles to shield real estate from the taxman, according to the Department of Finance.

Irish fund structures had been widely used in recent years by overseas buyers of distressed property assets acquired after the real-estate bubble imploded.

Papers published this week by the department’s tax strategy group cited Central Bank data showing that the quarterly increase of Irish real estate held by funds in the State slowed to 3% in the first quarter, to €13.7 billion.

Quarterly growth over the past three years has typically been in the order of a double-digit percentage, and as high as 38% in the three months to September 2014.