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 2010. From 08th December 2010 onwards, the only thing affecting the amount of Stamp Duty is the value of the property.
For properties valued up to €1,000,000 the new rate is 1% of the full value. For properties valued over €1,000,000, the rate of 1% applies to the first €1,000,000 and a rate of 2% applies to the balance. The new rates apply to instruments of transfer dated on or after 08th December 2010.
All existing reliefs and exemptions for stamp duty on residential property were abolished in respect of instruments executed on or after 8 December 2010, as follows:
- First-time buyer relief
- Exemption for new houses up to 125 sq m in size
- Relief on new houses over 125 sq m in size
- Consanguinity relief for residential property transfers
- Exemption for residential property transfers valued under €127,000
- Site to child relief
This means that many transactions which would have qualified for exemptions or reliefs under the old system will not now qualify.
However, if you were in the process of buying a property on 8 December 2010, and you would be disadvantaged if the new rules were applied, you may be able to avail of a transitional provision, which allows the old rules to apply for your benefit.
Rates of stamp duty on land/housing sites without residential buildings have not changed.
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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