Stamp Duty Rates in Ireland

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Stamp duty is one of the key additional expenses when buying a home so it’s important to understand how it works and to take into account when planning your finances.

What is stamp duty?
What rate of stamp duty do I need to pay?
What is meant by Clawback Period?
Stamp Duty Rates on Lands/Sites
When and how do I pay stamp duty?
Are there any exceptions to the rules?

What is stamp duty?
Stamp duty is a tax that you pay to the government when changing documents on a property. These documents specify ownership of the property. When planning to buy property you should factor this extra cost into your calculations both of the purchase price of the property and the amount you will need to borrow.

What rate of stamp duty do I need to pay?
The level of stamp duty applicable to you depends primarily on the type of property you are purchasing and your status as a property buyer. So for example, different rates will apply to new and second-hand homes for first-time buyers, second or subsequent time buyers or investors. The value of the house, apartment, land or status and your buying status determines the amount of stamp duty that is payable. Stamp duty is divided up into different categories and rates and the amount you pay will depend on:

Buyer Status: Whether you are a first-time buyer, an owner occupier or an investor
Plans: Whether you plan to live in the property as your primary residence
Property Type: New or Second-hand
Floor Area: The size of the property

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

Not a first time buyer
Since 5 December 2007, stamp duty rates on new houses and apartments with a floor area more than 125 square metres and a Floor Area Compliance Certificate:

Property Vaue	Owner Occupier
up to €125,000	Exempt
Next €875,000	7%
Balance	9%

Since 5 December 2007, stamp duty rates for second-hand houses and apartments for owner-occupiers (and investors buying new or second-hand houses and apartments):

Property Vaue	Rate
up to €125,000	Exempt
Next €875,000	7%
Balance	9%

What is meant by Clawback Period?
A clawback on exemption come about if rent is received from the letting of the house or apartment within a period of 2 years from the date of the conveyance or transfer, other than under rent a room arrangements. The clawback is the difference between the higher stamp duty rates and the duty paid and is payable on the date that rent is first received from the property. A clawback will not arise where the property is sold to an unrelated third party during the 2-year period.

Stamp Duty Rates on Lands / Sites
It is important to note here that there is no reduction in stamp duty rate on the purchase of land or sites. The same rates apply to all buyer types.

Chargeable Consideration (Price)	Stamp Duty Rate
€0 - €10,000	0%
€10,001 - €20,000	1%
€20,001 - €30,000	2%
€30,001 - €40,000	3%
€40,001 - €70,000	4%
€70,001 - €80,000	5%
€80,001 - €100,000	6%
€100,001 - €120,000	7%
€120,001 - €150,000	8%
€150,001	9%

When and how do I pay stamp duty?
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.

Are there any exceptions to the rules?
Yes. There are a number of exceptions:

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 (e.g., 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 greater than 500,000 euro. 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.
Stamp duty relief for exchange of farmland for farm consolidation purposes
The Finance Act 2005 provided a new stamp duty relief for an exchange of farmland between two farmers. This applies when farmers exchange land in order to consolidate their holdings. The stamp duty is applied to the difference in value between the lands concerned. Formerly each farmer was liable to the full stamp duty on property s/he receives.