Guide to Stamp Duty when Purchasing Property
When purchasing property in Ireland, Stamp Duty is paid to the Government as a tax based on the value of the property being purchased.
If the property sells/ is valued up to €1 million, the stamp duty payable is 1%. If the property value exceeds €1 million, then 2% rate will apply for the amount of the sales price which exceeds €1 million. In other words, if a property sells for €1.6 million, the amount of Stamp Duty payable would be €22,000- i.e. €10,000 on the first €1 million, and €12,000 on the next €600,000.
Stamp duty on new builds is imposed slightly differently. The Stamp Duty is calculated on the value of the home, minus the current VAT rate of 13.5%. This reduces the Stamp Duty bill somewhat.
If you are purchasing a commercial property, or land with no building on it, then Stamp Duty will be paid at 7.5%.
If you purchase ten or more properties within a year, then an increased Stamp Duty rate of 10% is payable on the total value of the properties purchased.
There are certain exemptions from Stamp Duty which can be summarised as follows:
- Property transferred between spouses or civil partners;
- Purchasers acquiring property under the Local Authority Tenant Purchase Scheme.
Stamp Duty for such transactions are capped at €100.
If you have any queries related to any element of a property transaction, please do not hesitate to contact Pauline Horkan, SallyAnn McCoy or Lorna McArdle on 012960666.
