Skip to main content

Stamp Duty- What You Need to Know

By January 19, 2024June 26th, 2024No Comments

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:

  1. Property transferred between spouses or civil partners;
  2. 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.