Stamp duty in Ireland is a tax payable to the Government based on the documents used in the transfer of property. The amount of stamp duty payable is determined by the type, size & value of the property & the purchaser’s status (i.e. first-time buyer, investor, etc.).

Residential Property Stamp Duty Rates

Changes to rates of stamp duty

There is a new simplified system of stamp duty which apply to residential property purchases on or after 5 December 2007. It also applies to instruments executed in the 30 days prior to that date.  The first €125,000 is exempt from stamp duty. Properties over €125,000 but under €1 million are charged stamp duty of 7% on the excess over €125,000. Properties over €1 million will be charged stamp duty of 9% on the excess over €1 million and 7% on the remainder between €125,000 and €1 million. Properties with a value of more than €125,000 but not exceeding €127,000 will not be liable for stamp duty.

First time buyers are exempt from stamp duty on new and second-hand houses and apartments.

Stamp duty rates on residential property from 5 December 2007

New houses and apartments with a floor area greater than 125 square metres and a Floor Area Compliance Certificate

Rates of stamp duty for second-hand houses and apartments for owner-occupiers (and investors buying new or second-hand houses and apartments)

Rules

Stamp duty on new houses and apartments less than 125 sq meters

Owner-occupiers of new houses/apartments are exempt from stamp duty, provided that the area of the house or apartment does not exceed 125 sq. metres (1,346 sq. feet) and a Floor Area Compliance Certificate has been issued. The house or apartment must not have been occupied prior to its purchase. It must be occupied as the owner's main place of residence for a period of 5 years from the date of the purchase deed. However if you sell the house during this period you do not have to repay stamp duty.

Stamp duty on new houses and apartments in excess of 125 sq meters

If the area of the house/apartment is greater than 125 sq. metres (1,346 sq. feet), stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure.

Stamp duty rates for first-time buyers of residential property

First-time buyers who are owner-occupiers of new and second-hand residential property do not pay stamp duty.

Clawback of stamp duty relief

A stamp duty clawback arises where rent, other than under the 'Rent a Room scheme' is obtained within the 5 year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of obtaining the benefit of the reduced rates.

Reduction of claw-back period: for purchase deeds dated on or after 5 December 2007 the clawback period is reduced to 2 years. Where a property was purchased before 5 December 2007 but was rented on or after that date, there will be no claw back of stamp duty relief if it is rented in the 3rd, 4th or 5th year of ownership.

Under the 'Rent a Room scheme', there is no stamp duty clawback where rent is received by the person in occupation of the house or apartment on or after 6th April, 2001 for letting of furnished accommodation in part of the house.

Stamp duty rates for non-owner-occupiers

Non-owner-occupiers are liable for stamp duty on both new and second-hand houses or apartments. The same rates of stamp duty apply to investors as to non-first time owner-occupiers.

Transfer of property between relatives

Stamp duty is payable at half the normal rate applicable if there is a transfer of property (other than shares) to certain relatives (for example, a parent, grandparent, step-parent, child, brother, sister, half-brother, half-sister, aunt, uncle, niece or nephew). This relief is not available on leases or on transactions involving cousins and/or in-laws.

Site transfers from parent to child

Stamp duty and Capital Gains Tax do not apply where a parent transfers a site to a child. The site must be for the construction of the child's principal private residence and the market value of the site must not  be greater than €500,000 for disposals made on or after 5 December 2007. The exemption threshold is €253,947.62 for disposals made before 5 December 2007. A parent can only transfer one site to each child to take advantage of this exemption. If the child then sells the site without the principal private residence being built and lived in for 3 years, there will be a clawback of the capital gains tax relief permitted. There will be no clawback if the child dies.

For Further information outlined by the Revenue Commissioners please see: http://www.revenue.ie/revguide/stampduty.htm

How to apply

Your Solicitor will calculate how much stamp duty is due & request this from you prior to the closing of the sale. The amount is paid to the Revenue Commissioners who place a stamp on the property deeds. Without this stamp, the deeds cannot be registered