Budget 2025 resulted in 2 changes to stamp duty on property as set out below::
- The 1% stamp duty rate is payable up to €1million for residential property
- The 2% stamp duty rate is then payable up to €1.5 million for residential property
- A new 6% stamp duty rate was introduced in Budget 2025 which applies for residential properties valued at more than €1.5 million .
- The 6% rate applies to the amount you pay above €1.5 million.
- Stamp duty for people who buy 10 or more residential houses in a year went up from 10% to 15%.
Vat on Residential Property:
If you pay VAT when you buy your new home, you only pay stamp duty on the base price of the house being the vat exclusive price.
Non-Residential Property:
A single rate of 7.5% applies to the transfer of ownership of all non-residential property.
Capital Acquisitions Tax (Inheritances and/or gifts)
Where the amount you receive as a gift or inheritance is below a certain level you may not have to pay tax (provided you have not previously used up your tax-free threshold). The amounts at which tax applies varies depending on the relationship to the person providing the gift or inheritance.
Class (a) Threshold for 2025 is €400,000. This would apply where the receiver of the gift/inheritance is a child or to a grandchild, if their parent has died and the grandchild is under 18.
Class (b) Threshold for 2025 is €40,000. This would apply where the receiver of the gift/inheritance is a brother, sister, parent, grandparent, grandchild or other relative of direct descent, niece or nephew by blood.
Class (c) Threshold for 2025 is €20,000. This would apply where the receiver of the gift/inheritance is any relationship not in Class (a) or (b) above.
Once you exceed your tax free threshold you must pay tax at the current rate of 33% on the amount received above your threshold for the particular Tax Class.
