1. Introduction:
Stamp-duty liabilities can be as high as 9% of the price of a property so it is very important to understand how stamp duty works and to take this into account when buying your home. Stamp duty is the tax payable to the government for changing the documents that specify who owns a particular property. Thanks to the changes in the 2007 finance bill First-time-buyers will not have to pay any stamp duty on 2nd hand or new homes. (Previously first time buyers where only exempt on 2nd hand properties below €317,500 or new homes below 125 sq. m). Any stamp duty already paid by a first time buyer after 31 March 2007 can be claimed back from the revenue commissioners.
The main factor for calculating stamp duty is the type of property being sold.
2. Second-Hand Homes (i.e. Previously occupied homes)
The stamp duty due on the purchase of a second-hand home depends on whether you're a first-time-buyer or not and the price of the property being purchased. The table below will help you work out your stamp-duty liability:
| Price of property: |
First-time-buyers: |
Owner-occupiers/Investors: |
| €0 - €127,000 |
0% |
0% |
| €127,001 - €190,500 |
0% |
3% |
| €190,501 - €254,000 |
0% |
4% |
| €254,001 - €317,500 |
0% |
5% |
| €317,501 - €381,000 |
0% |
6% |
| €381,001 - €635,000 |
0% |
7.5% |
| €635,001+ |
0% |
9% |
3. New Homes
| If you are a first time buyer no stamp duty is payable. For everyone else the stamp duty on new homes depends primarily on the area of the property. If the property is under 125 square metres and you're an owner occupier (i.e. you plan on living there, but it is not your first home purchased) NO DUTY is payable. |
| Who: |
Duty (Area under 125 m2): |
Duty (Area over 125 m2): |
| First-time buyers: |
EXEMPT - 0% |
EXEMPT - 0% |
| Owner-occupiers: |
EXEMPT - 0% |
(see below) |
| Investors: |
(see below) |
(see below) |
Otherwise, if the property is over 125 square metres or you're an investor, the stamp duty is calculated from the table below using whichever of the following two values is greatest:
- The cost of the site OR
- 25% of (the cost of the site + the building costs less VAT @ 13.5%)
| Value: |
Non-investors: |
Investors: |
| €1 - €127,000 |
0% |
0% |
| €127,001 - €190,500 |
0% |
3% |
| €190,501 - €254,000 |
0% |
4% |
| €254,001 - €317,500 |
0% |
5% |
| €317,501 - €381,000 |
0% |
6% |
| €381,001 - €635,000 |
0% |
7.5% |
| €635,001+ |
0% |
9% |
|
4. Land & Sites
Stamp duty for the purchase of land & sites is based solely on the price and there are no reductions for first-time-buyers or owner-occupiers. It is calculated as follows:
| Price of property: |
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% |
5. Further Details
When closing the sale, your solicitor will calculate the exact stamp duty due and you will be required to pay this amount to the Revenue Commissioners. Your solicitor will usually arrange this payment.
You may also be liable for a small stamp duty on your mortgage deeds. This duty applies to mortgages in excess of €254,000. The duty payable is €1 for every €1,000 of your mortgage. This duty is negligible and should not affect you greatly.
There are further exemptions from stamp duty for the sale or transfer of property between parent and child and other close relatives. See www.oasis.gov.ie for more information. |
