Stamp Duty
The recent changes in stamp duty rates are outlined in the table below.
New stamp duty rates for residential property sold in the Republic of Ireland were introduced in the Budget for 2008. These rates apply to all contracts executed on or after 05th December 2007 and to documents due to be presented for stamping no later than the 05th December 2007.
First-time buyers who are owner-occupiers of new and second hand residential property continue to be exempt from stamp duty.
Existing property owners purchasing a residential property to occupy as their new home will be exempt from stamp duty on properties valued up to €125,000. Properties with a value of more than €125,000 but not exceeding €127,000 will not be liable for stamp duty.
No stamp duty is payable by the owner-occupier on the purchase of a new house up to 125 sq. metres. In the case of a new house bought by an owner-occupier above this size, the stamp duty is charged only on the site value or a one-quarter of the total value of the site and the house, whichever is the greater.
The period for which an owner-occupier must occupy a new home, on which he/she has been exempted from stamp duty as a first time buyer, before they can let the property has been reduced from 5 years to 2 years.
The exempt threshold for the transfer of a site to a son or daughter on or after 05th December 2007 has been raised from €254,000 to €500,000 for stamp duty and CGT purposes.
Your solicitor will calculate how much stamp duty is due and 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.
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