Guide to Stamp Duty in Conveyancing

Stamp duty is essentially a tax charged on the deed whereby property ownership is transferred from a vendor to a purchaser. Unfortunately, it is always the purchaser who must pay this amount over to the Revenue! 

The stamp duty rates in Ireland used be very complicated and would almost vary from year to year but the stamp duty position now is quite straightforward.  

RESIDENTIAL PROPERTY:  

1. which includes houses, apartments and buy-to-lets, the rate of stamp duty is 1% on the value of the property up to €1,000,000 and after that 2% on the value over. So, an older house costing €550,000 would attract stamp duty of € 5,500.  
2. whether houses or apartments etc.:  the rate remains the same but because all new builds include 13.5% VAT, the duty is only charged on the value of the house or apartment after the VAT has been deducted. So, if you paid € 454,000 (which includes VAT) for the house, this is made up of the base price of €400,000 plus 13.5% VAT of €54,000 and you only pay stamp duty on the lower base price of € 400,000 or €4,000 duty.  

NON-RESIDENTIAL PROPERTY:  

This would typically refer to sites without any planning permission, pubs, offices, shops, and industrial units.  

Since 2019, the rate is 7.5% and there are no deductions for VAT as these types of properties are usually old and do not attract VAT.  

ARE THERE ANY EXEMPTIONS FROM HAVING TO PAY STAMP DUTY?  

Yes, there are four main exemptions:  

1.  The major one is any transfer of property between spouses or civil partners.  
2.  Any property transfers between former spouses under a court order after a divorce. These are called Property Adjustment Orders.  
3.  Any property transfers between co- habitants made under a similar court order. 
4. If you purchase property under the Local Authority Tenant Purchase Scheme, then the stamp duty is capped at € 100.  

If a person requires legal assistance on a property sale/purchase matter from property solicitors, we can be contacted on  (052) 612 1999 or (01) 546 1121.