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Stamp Duty in Ireland
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 divided up into different categories and the rates depend on the following:
- Are you going to live in the house or apartment?
- Are you an owner occupier or a first time buyer?
- Is this a new or second hand house?
- The size of the property.
Stamp duty is also payable on land/sites without residential building. If your agreement to buy a site is linked to a construction contract, stamp duty might be payable on the full amount of the site plus the construction contract.
Please Note: There is no Stamp Duty for owner/occupiers of new houses/apartments provided that the area of the property is not greater than 125 sq. meters (1346 sq. feet). The property must not have been occupied prior to its purchase and must be occupied by the owner as a main place of residence for a minimum of five years from the date of purchase deeds.
The following tables show the amount of stamp duty for land and property purchase over 125 sq. meter;
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Aggregate Consideration
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Rate Of Duty
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€0 - €10,000
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Exempt
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€10,001 - €20,000
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1%
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€20,001 - €30,000
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2%
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€30,001 - €40,000
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3%
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€40,001 - €70,000
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4%
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€70,001 - €80,000
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5%
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€80,001 - €100,000
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6%
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€100,001 - €120,000
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7%
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€120,001 - €150,000
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8%
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€150,001 +
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9%
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Property
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Chargeable consideration
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Owner occupier
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Up to €125,000
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Exempt
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Next €875,000
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7%
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Balance
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9%
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Note:
Site transfers from a parent to a child:
There is no Stamp Duty or Capital Gains Tax where a parent transfers a site to a child. The site must be for the construction of the child’s main private residence and the market value of the site must not be greater than €254000.
Only one site can be transferred by the parent to each child to take advantage of this exemption. If the child decides to sell the site without the main private residence being built or lived in for three years, there will be a claw back of the Capital Gains Tax. There will be no claw back if the child dies.
* You will qualify as a first time buyer if you have never purchased or owned a property in Ireland and the property that you are purchasing is your main place of residence. You are not allowed to rent any part of the property for 5 years after the purchase date.
Warning: A clawback arises if rent is obtained from the letting of the house or apartment for a period of 5 years from the date of the conveyance or transfer, other than under the rent-a-room scheme. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property. A clawback will not arise where the property is sold to an unrelated third party during the 5-year period.
To find out more visit www.revenue.ie
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