What Is Stamp Duty in Ireland?
Stamp duty in Ireland is a tax you pay when you become a property owner. For both first-time buyers and second home owners, stamp duty is applied when there's a transfer of ownership. Stamp duty in Ireland is taken as a percentage of the value of the property, so the more expensive the property, the higher your stamp duty will be.
Stamp duty is not only used for properties but also on other financial transactions such as transferring stock and shares. For the purpose of this guide however, we'll only focus on the stamp duty on properties.
When Do I Pay Stamp Duty?
When buying a house, you will usually be working with a solicitor who will help you out with all the legal aspects of the purchase. Before you've completed the transaction and before taking over the ownership of the property, your solicitor will calculate the stamp duty you need to pay for you.
You will usually need to pay the stamp duty within a month and it will be paid onto the Revenue Commissioner. If you don't pay the stamp duty, your property deeds won't be registered.
Who Pays the Stamp Duty?
Stamp duty is paid by the purchaser of the property and by the person whose name will be on the deeds. In the case of a joint ownership — such as under a tenants in common arrangement — each party in the agreement is liable for paying the stamp duty.
What Are the Stamp Duty Rates?
The rates for stamp duty in Ireland depend on the value of the property and how many properties are being bought. It also depends on the condition of the property such as whether it's a new build or second hand and if it's a residential or non-residential.
Residential Stamp Duty Rates in Ireland
| Property Value | Stamp Duty |
|---|---|
| On the first €1,000,000 | 1% |
| Any amount over €1,000,000 | 2% |
What About New Builds?
Stamp duty is the same for new builds however it does usually work out a little lower because it is calculated from the price of the property without the 13.5% of VAT. This means that a property worth €300,000 would pay only €2,595 in stamp duty instead of €3,000.
What About Stamp Duty on Multiple Properties?
If you're buying multiple properties, you'll usually pay a much higher rate for your stamp duty. If you're buying 10 or more properties that can be either houses or duplexes, you will need to pay a total stamp duty worth 10% of the total amount.
Non-Residential Stamp Duty Rates in Ireland
For non-residential properties, the stamp duty is 7.5% of the property's value. If you buy a property that you are going to use as both a residential and for your business, you will pay the residential rate of stamp duty instead.
Are There Stamp Duty Exemptions in Ireland?
There are some exceptions to stamp duty in Ireland that occur in certain circumstances. Unfortunately, there are no longer any stamp duty relief programmes available for first-time home buyers or people from disadvantaged situations.
- Property Transferred Between Spouses, Partners and Cohabitants — Property transferred between spouses, civil partners and cohabitants are not charged with stamp duty and are always exempt. The deeds can be passed on without restrictions.
- Farm Transfers — If you own a farm and are passing it on to family members, you can qualify for having the stamp duty tax reduced to 1%. You must have either lived on the farm for 6 years or have leased it for a minimum of 6 years.
Frequently Asked Questions About stamp duty in Ireland
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