There is a new simplified system of stamp duty which apply to residential property purchases on or after 5 December 2007. 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. We advise you to seek confirmation on Stamp Duty rates from your Solicitor.
When do you pay Stamp Duty
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.
Stamp Duty for New Houses UNDER 125 Sq Metres
First-time buyers are exempt from stamp duty on all properties. Owner-occupiers (but not investors) of new houses are also exempt from stamp duty, provided that the area of the house does not exceed 125 sq. metres (1,346 sq. feet) and a Floor Area Compliance Certificate has been issued. The house 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 five years from the date of the purchase.
| |
Chargeable Consideration |
First Time Buyers
|
Non-First Time Buyers |
Investors New Homes |
|
Up to €125,000 |
0% |
0% |
0% |
|
Next €875,000 |
0% |
0% |
7% |
|
Balance |
0% |
0% |
9% |
Stamp Duty for new houses over 125 Sq Metres
First-time buyers are exempt from stamp duty on all properties. Owner-occupiers who purchase a new house greater than 125 Sq Metres (1,346 sq. feet) can avail of a reduction in the amount of stamp duty payable. 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. This figure is called the Chargeable Consideration - see table below.
The following are the rates applicable to new houses/apartments greater than 125 sq. metres (taking into account the Chargeable Consideration):
|
Chargeable Consideration |
First Time Buyers
|
Non-First Time Buyers |
Investors New Homes |
|
Up to €125,000 |
0% |
0% |
0% |
|
Next €875,000 |
0% |
7% |
7% |
|
Balance |
0% |
9% |
9% |
Stamp Duty for Second Hand Properties
The following tables illustrate the new stamp duty rates as of December ‘07, and the savings that purchasers will experience at different property prices.
|
Chargeable Consideration |
First Time Buyers
|
Non-First Time Buyers |
Investors New Homes |
|
Up to €125,000 |
0% |
0% |
0% |
|
Next €875,000 |
0% |
7% |
7% |
|
Balance |
0% |
9% |
9% |
Stamp Duty rates for 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:
| |
Chargeable Consideration |
Stamp Duty Rate |
| |
|
|
| |
Up to €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 and over |
9% |
Clawback of Stamp Duty
The exemption from stamp duty for first-time house buyers and buyers of certain new homes is currently clawed back if the purchaser rents out the home within 5 years of date of purchase. This clawback period is being reduced to 2 years for all deeds of transfer executed on or after 5 January 2007.
For deeds of transfer executed before 5 December 2007, if that house or apartment is rented out on or after 5 December 2007, it will not involve a claw-back of relief where this happens in the third, fourth or fifth year of ownership.
For further information about stamp duty including exemptions and full explanations of all rules please consult http://www.citizensinformation.ie/ and the Revenue Commissioners website www.revenue.ie
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