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Stamp Duty

Stamp Duty is a tax payable to the Government, placed on the purchase of property. i.e, the conveyance document which transfers ownership to you. The value of the property and your status, i.e are you a first time buyer or an investor, will determine how much you must pay.

Stamp Duty is divided into different catagories and rates. How much you pay is determind by:

  • Whether you will live in the property or are you an investor.
  • Whether you are a first time buyer.
  • The size of the property.

Stamp Duty is also payable on land without residential buildings.

Rules

Stamp duty on new houses and apartments

  • Owners/occupiers of new houses/apartments are exempt from stamp duty as long as the area does not exceed 125 sq meters.
  • The house must not have been occupied prior to purchase.
  • The property must be the owners main residence for a period of at least 5 years.

Stamp duty for first time buyers

First time buyers who who purchase second hand residential property will not pay stamp duty .

Stamp duty rates for non-owner-occupiers

  • Non-owner-occupiers are liable for stamp duty on both new and second hand houses/apartments.
  • The same rate of stamp duty applies to investors as to non first time owner occupiers.

Transfer of property between relatives

Stamp duty is payable at half the normal rate if there is a transfer of property between relatives. This relief is not available on lease or transactions involving cousins or in-laws.

Site transfers from parent to child

Stamp duty does not apply where a parent is transfering a site to a child.

Rates

Residential Stamp Duty Reform.

With immediate effect the Stamp Duty regime applicable to residential property is being reformed and simplified. Gone are the complicated rates of the past in favour of a much simpler model.

The new changes apply to second-hand residential property whereby you don't pay any stamp duty on the first €125,000 of the property value. For the next €875,000 (up to €1 million), the rate is 7% and for anything over €1 million the rate is 9%.

New Stamp Duty System: (as per Budget 2008)

These new stamp duty rates are now effective.

Property Value Rate
Up to €125,000 Exempt
Next €875,000 7%
Balance 9%

Your solicitor will tell you how much stamp duty is due and request this from you prior to the closing of the sale. This amount is paid to the Revenue Commissioners who place a stamp on the properties deeds. Without this stamp the deeds cannot be registered.