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Home » IRELAND ISLAMIC MORTGAGE WITHOUT INTEREST (RIBA)

IRELAND ISLAMIC MORTGAGE WITHOUT INTEREST (RIBA)

IRELAND ISLAMIC MORTGAGE WITHOUT INTEREST (RIBA)

What is in Ireland a halal home loan without Riba (interest)

An Ireland Islamic mortgage without interest (riba) is a Sharia-compliant home-finance arrangement that avoids charging or paying interest.

it uses contracts such as Ijara (lease-to-own), Diminishing Musharaka (shared ownership where the customer gradually buys out the financier’s share and pays rent on the remaining share), or Murabaha (cost-plus sale with a fixed, pre-agreed profit).

Why Irish Muslims opt for Islamic mortgages with no interest: the foremost reason is religious—avoiding riba while still accessing home ownership. Beyond faith alignment, these products are typically asset-backed, aim for transparency (e.g., a known sale price in Murabaha or clear rent/ownership split in Diminishing Musharaka), and follow ethical screens.

In Ireland, Halal home loan with no interest are meanwhile accepted by the Irish financial regulator; the tax treatment aims for neutrality so Islamic arrangements are not disadvantaged versus conventional ones; the Revenue Commissioners provide a dedicated page (updated May 26, 2025) explaining how to notify “specified financial transactions” (e.g., Ijara, Murabaha) and the forms involved (SFT1/SFT2).

Can I get an Islamic mortgage without riba in Ireland ?

Yes and No—options exist, but they’re limited. Ireland recognises Sharia-compliant home-finance structures (like Ijara, Murabaha and Diminishing Musharaka) in its tax rules, which helps providers operate here.

However, the only operational Shariah-style financing in Ireland is through Community Finance Ireland (CFI), which provides Murabaha-based property financing. However, this is only for community organizations or social enterprises, with loan amounts up to €500,000—not for individuals.

WHAT DO I NEED TO BE ELIGIBLE FOR A HALAL HOME LOAN IN IRELAND ?

Inferred Eligibility Requirements Once Products Launch

Although no products are available yet, we can anticipate eligibility criteria based on models from the UK and other markets:

  1. Deposit / Equity Contribution
    • Typically, a minimum deposit of around 20% of the property value is required.
  2. Proof of Income & Affordability
    • Applicants must demonstrate stable income and pass affordability assessments similar to those in conventional mortgage processes.
  3. Shariah-compliant Financing Structure
    • Financing would need to follow Islamic structures such as Murabaha, Ijara, or Diminishing Musharaka.
  4. Regulatory and Tax Clarity
    • Ireland’s legal and tax framework has made some progress—such as defining “specified financial transactions” in the Finance Act 2010 and allowing equivalent tax treatment for Islamic products.
    • But full regulatory clarity for retail Islamic mortgages is still pending.
WHICH HALAL LENDERS IN IRELAND ARE PROPOSING ISLAMIC MORTGAGES WITH NO RIBA ?

Here’s the Ireland-specific picture (as of 8 September 2025):

  • Halal Mortgage Ireland (Dublin 16) – actively marketing Sharia-compliant home-finance in Ireland (positions itself as “the first provider” in Ireland). Do your own due diligence on authorisation and Sharia certification before applying. Halal Mortgage+1
  • Offa (UK) – not an Irish lender, but relevant context: in Dec 2024 Offa bought Bank of Ireland’s legacy Alburaq Sharia-compliant home-finance portfolio (i.e., existing UK plans moved to Offa). That was a book sale, not a new Irish product launch.

Useful backdrop (not lenders): Ireland’s Revenue recognises Islamic-finance contracts (e.g., Ijara, Murabaha, Diminishing Musharaka) for tax purposes, which helps providers operate here, but it doesn’t mean many are live yet.

What to do next

  1. Ask any provider for: Central Bank of Ireland authorisation, Sharia-board certificates, and a plain-English summary of the contract (Ijara/Murabaha/Musharaka). 2) Confirm Irish tax treatment (Revenue “Islamic financing” guidance) and legal advice before you commit.

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