Property developer Johnny Ronan has changed his personal tax residency to Malta, which is considered a tax haven by some campaigners.
Until last month Mr Ronan was officially recorded on company documents as living at his country estate in Enniskerry, Co Wicklow. Two weeks ago, however, he signed a document stating he is now based at a modest flat overlooking the harbour in Birzebbuga, a coastal town in south Malta, 17km (10 miles) from the capital Valetta. The move is effective from the end of November 2020.
Mr Ronan’s development company, Ronan Group Real Estate (RGRE), declined to comment last night on his personal tax arrangements, while Mr Ronan did not respond to a request for comment.
Convenient shelter
Malta is not formally listed as a tax haven by the European Union or the Organisation for Economic Co-operation and Development, but it carries some of the characteristics of a haven and is viewed in the financial services sector as a convenient tax shelter for personal income.
Foreign citizens domiciled in Malta but not ordinarily resident there do not pay any tax on their income from outside the island. Other prominent Irish business people who are tax-resident in Malta include Digicel founder Denis O’Brien, and Eason bookshops chairman David Dilger.
Mr Ronan’s uses his new Malta address on documents for RGRE J&R, a company that holds close to €170 million of his property assets. Its accounts filed this week for 2020 show it wrote down the value of its properties by €23.5 million, due to the “impact of Covid-19 on retail property values”.
Losses and debts
It said it was “continuing to collect its rental income in full”, as it recorded a loss of €26.3 million, mostly due to the writedowns. It owes lending institutions €180 million, due for repayment in January. The directors, including Mr Ronan and his son and daughter, say refinancing terms have been agreed.
RGRE is currently embroiled in a court battle with his financial backer, the former Colony Capital, now known as Digital Bridge. Mr Ronan’s company has obtained interim injunctions restraining it from selling stakes in their co-investments to US group Fortress Investment. Mr Ronan claims he had a deal to bring in South African financial backers instead.
