Stamp Duty is a tax that you pay to the Government when you purchase Land or Property. Like it or not stamp duty is here to stay and it is something that should be brought into the equation when budgeting for you build.
Stamp duty is charged on the instruments used in the transfer of property– in other words, the conveyance documents that transfer ownership of the property. The only factor affecting the amount of stamp duty is the value of the property.
It applies to residential property such as houses or apartments. It is also payable on land or housing sites without residential buildings. If your agreement to buy a site is linked to a construction contract, stamp duty may be payable on the full amount of the site plus the construction contract.
Before 8 December 2010 there was a complex system of exemptions and reliefs for stamp duty on residential property.
A simplified system was introduced on that date and this is still in force - see 'Rates' below.
The earlier rules are described in ‘Further information’ below.
Budget 2012 announced the following changes to the stamp duty system for non-residential property:
A single lower rate of 2%
The first €10,000 is no longer exempt
Consanguinity relief (see below) will be abolished after December 2014
Transitional arrangements will ensure that anyone who entered into a binding contract to purchase a non-residential property before 7 December 2011, and who executes the transfer of that property before 1 July 2012, will not lose out.
Up to 8 December 2010, stamp duty was payable at half the normal rate applicable if there was a transfer of property (other than shares) to certain relatives - for example, a parent, grandparent, step-parent, child, brother, sister, half-brother, half-sister, aunt, uncle, niece or nephew. This relief was not available on leases or on transactions involving cousins and/or in-laws.
This consanguinity relief was abolished with effect from 8 December 2010, but only as it applied to residential property. It continues to apply to non-residential property, but this will cease after 31 December 2014, as announced in Budget 2012.