|
 |
|
|
Stamp Duty |
The most common form of stamp duty which affects individuals is the stamp duty on the purchase of residential property i.e; houses and apartments. The amount of stamp duty paid depends on;
-
The price paid (or the market value where the price is less than the market value) for the property
-
Whether the property is new or second hand and
-
Whether you are a first time buyer, owner occupier or investor.
How much Stamp Duty will I have to pay?
Depending on your status as a buyer and the type of property you are purchasing, stamp duty can form a considerable expense. The amount of stamp duty applicable to your purchase depends on several key factors:
| Status as a buyer: |
First time buyer, Owner-occupier or Investor |
| Property Type: |
Second-hand or New home |
| Floor Area: |
The size of the property |
What is my status as a buyer?
- First time buyers:
A first time buyer is a person who has not previously purchased or built a house or apartment anywhere in the world and who is purchasing the property for use as their main residence and not buying the property in order to rent it out as an investor.
- Owner-occupiers:
An owner occupier is a person who purchases an apartment or house for use as their principal residence.
- Investor:
A person buying a property as investment, examples include a second home, or purchasing a property in order to let it out.
What type of home are you buying – how much Stamp Duty applies to you?
New Homes
First-time buyers do not have to pay any stamp duty on new homes.
For Owner occupiers the following rules apply:
- On a property where the floor area is less than 125 sq. metres - No stamp duty
- On a property where the floor area is greater than 125 sq. metres, stamp duty is payable at the following rates:
| Property Value |
Rate |
| Up to €125,000 |
Exempt |
| Next €875,000 |
7% |
| Balance |
9% |
Investors also pay stamp duty on new homes according to the above table
Second hand homes
First-time buyers do not have to pay any stamp duty on second hand homes.
Owner occupiers and Investors pay stamp duty at the following rates:
| Property Value |
Rate |
| Up to €125,000 |
Exempt |
| Next €875,000 |
7% |
| Balance |
9% |
When is Stamp Duty payable?
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.
| | |
Sites
Where an individual purchases a site in connection with,or as part of,an arrangement to build a house or apartment on that site then stamp duty will be charged,subject to the reliefs referred to above, based on the aggregate amount of the site cost and the building cost at the appropriate residential property rate.
Where an individual purchases a site with no connected agreement to build a house or apartment, the transfer of the site is chargeable at the non-residential rates in the table below.
The transfer of a site from a parent to child is exempt from stamp duty where the site transfer is for the purpose of constructing a house which will be the child’s main residence and where the value of the site does not exceed €254,000.
Non-Residential Property is basically any property other than residential property, stocks or marketable securities or policies of insurance. It includes (but is not limited to) sites, offices, factories, other business premises, shops, public houses,land and goodwill attaching to a business.
The following rates are applicable to non-residential property:
|
Aggregate Consideration |
Rate of Duty |
|
Up to €10,000 |
Exempt |
|
€10,001 to €20,000 |
1% |
|
€20,001 to €30,000 |
2% |
|
€30,001 to €40,000 |
3% |
|
€40,001 to €70,000 |
4% |
|
€70,001 to €80,000 |
5% |
|
€80,001 to €100,000 |
6% |
|
€100,001 to €120,000 |
7% |
|
€120,001 to€150,000 |
8% |
|
Over €150,000 |
9% |
| |
|
|
|
|
|
