Summary of Stamp Duty Rates in Ireland

• Non residential property
• Residential Property
• First Time Buyers Relief
• Residential Property ?New Rate Structure
• Exemptions & Reliefs
• Clawback of First-Time buyers Relief
• Anti-Avoidance
• Other Rates

Stamp Duty is a duty levied on documents or instruments, executed in Ireland , relating to conveyances and certain other transactions.

The rate of stamp duty levied depends on the head of charge under which an instrument is classified.

Trade In Scheme

No stamp duty will be payable by a person who accepts a property in exchange or in part exchange for a new house or apartment under a “trade in scheme? Under this arrangement stamp duty will only become payable when that person subsequently sells the house that was swapped. This relief will not apply to commercial property.

Non residential property

Rates from 15 October 2008 onwards

0???????? €10,000 Exempt
€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%
Over €80,000?????????? 6%

Residential Property

First Time Buyers Relief

First-time purchasers of new houses/apartments in excess of 125 sq. metres, and first-time purchasers of second-hand houses/apartments, as owner-occupiers, will be eligible for a stamp duty exemption.

There is also a stamp duty exemption for all owner-occupiers who purchase a new house/apartment of 125 sq. metres or less.

Residential Property ?Rate Structure

With effect from 8 December 2010 the rate of stamp duty that applies to residential property is as follows:

Property Value Rate

Up to €1,000,000 1%

Over €1,000,000 2%

Rate that applied prior to this date are as follows:

• A 7% rate applies up to €1,000,000 and it is charged on the excess of the consideration over €125,000.
• A 9% rate applies where the consideration exceeds €1,000,000 and it is charged on the excess of the consideration over €1,000,000.

*To fully preserve the existing exemption, transactions, where the consideration (or aggregate consideration) does not exceed €127,000, are exempt from stamp duty.

Abolished Reliefs:

Previous reliefs as outlined below have been abolished with certain transitional provisions for people who had entered into contracts before 8 December 2010.

• From 8 December all property is subject to stamp duty, there is no distinction between first time, and non first time buyers or between new and second hand properties. Previously first-time purchasers of new houses/apartments in excess of 125 sq. metres, and first-time purchasers of second-hand houses/apartments, as owner-occupiers, were eligible for a stamp duty exemption.
• The small property exemption has been removed.
• The 50% relief for transfers between related persons has been abolished.
• Relief on site transfers to a child have also been abolished. Previously the transfer of a site from a parent to a child (or a foster child who has been cared for by the donor for a period of at least five years prior to reaching the age of eighteen), for use in the construction of their principle private residence is exempt from stamp duty, where the market value of the property does not exceed €500,000 €254,000 pre 5/12/2007), and the total area not exceeding 1 acre (excluding the proposed property area).

Exemptions & Reliefs

• Transfers between husbands and wives are exempt (including certain transfers on divorce).
• Certain transfers on divorce are exempt.
• Wills are exempt.
• Transfers of Irish government stocks are exempt.
• Transfers between associated companies are exempt, subject to certain conditions.
• Covenants to children and charities.
• Transfers on certain takeovers reconstructions and mergers.
• Transfers of assets from a liquidator to a shareholder on liquidation.
• Transfers of foreign land and shares
• Certain financial services instruments
• Transfers of property other than stocks and shares between related persons are charged at half the usual rate of duty.
• For transfers of agricultural land
• The transfer of a site from a parent to a child (or a foster child who has been cared for by the donor for a period of at least five years prior to reaching the age of eighteen), for use in the construction of their principle private residence is exempt from stamp duty, where the market value of the property does not exceed €500,000), and the total area not exceeding 1 acre (excluding the proposed property area).
• The sale, or transfer of trademarks and intellectual property.
• The sale or transfer of an EU single farm payment entitlement.

Clawback of First-Time buyers Relief

The clawback period for first-time buyers relief and owner –occupier relief has been reduced from five years to two years where the property is let, this applies to for instruments executed post 5 December 2007.

Anti-Avoidance

Where a person makes a gift or a loan to a first time buyer, they may not reside in the property or the property may not be transferred to the donor/person making the loan except where the donor/lender is the parent of the first time buyer.

Other Rates

1% Transfer of Stocks and shares (first €1,000 is exempt)

0%-6% premiums on leases

1%-12% Average annual rent (depending on the lease term)