What is stamp duty?
It’s a tax you have to pay when you transfer ownership of a property and other assets in Ireland.
Stamp duty is due when a Deed of Transfer or Deed of Conveyance is required to transfer ownership. Some examples of where stamp duty might be owed include:
- Written leases of buildings and land in Ireland
- Stock transfer forms which transfer ownership of shares or stocks in Irish companies
- Written gifts of property
How much is stamp duty in Ireland?
When you’re buying a home, stamp duty rates depend on the value of the property. The current rates for residential homes in Ireland are:
- 1% of the purchase price up to €1m
- 2% of anything above €1m
For example, if you bought a home for €500,000, the stamp duty due would be €5,000.
Stamp duty on new homes
If you’re buying a new build property then the Stamp Duty is calculated differently, and is normally a little lower.
While the stamp duty rate for new homes is the same, it is only applied to the price of the property minus VAT, which is currently 13.5%.
For example, if you bought a new build home for €500,000 the stamp duty due would be €4,325.
Who has to pay the stamp duty?
It depends on the transaction taking place.
In each transaction there is an accountable person who is responsible for paying any stamp duty owed.
For example, when you’re transferring the ownership of a property, it is usually the purchaser or transferee (the person buying the property) that has to pay the stamp duty.
- If you’re renting a property, the tenant is the accountable person
- If the property being transferred is a gift, all parties are considered to be accountable
When more than one person is classed as the accountable person, they’re jointly and severally liable.
When is stamp duty due?
Your exact stamp duty bill is usually calculated by your solicitor and requested before the sale is closed.
Your solicitor will then transfer the funds to the Revenue Commissioners who stamp the property deeds so they can then be registered in your name.
Stamp duty exemptions
There are some circumstances when transactions are exempt from stamp duty altogether. These include:
- Transfers & leases of property between spouses and civil partners
- Property transferred following a divorce or the dissolution of a civil partnership
- Property transferred by a cohabitant to another cohabitant following a Property Adjustment Order
There are also some reductions available when family members transfer ownership of farm land, you can find out more on the Revenue.ie website.
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Stamp duty FAQs
Can you put stamp duty on a mortgage?
It may be possible, but it will depend on your lender.
Adding your stamp duty to your mortgage will also make your mortgage more expensive and mean you’ll pay more in interest over the mortgage term.
Do farmers pay stamp duty?
Yes, but there are several forms of relief available from the government to reduce the amount of stamp duty farmers have to pay on certain transactions. These reliefs include:
- Farm Consolidation Relief
- Relief for leases of farmland
- Consanguinity relief
- Young Trained Farmer Relief
You can find out more about these different types of relief for farmers on the Revenue.ie website.
Do first time buyers have to pay stamp duty?
Yes, first time buyers do have to pay stamp duty when they are classified as the accountable person. This is usually the case when buying a property.
Do I have to pay stamp duty if I inherit a property?
No, you don’t normally have to pay Stamp Duty on a property you inherit from a will or under intestacy rules.
Do I have to pay stamp duty on stocks and shares?
Yes, you have to pay stamp duty when you buy stocks, shares and other marketable securities traded on the Irish Stock exchange.
You don’t have to pay stamp duty on the issue of new shares.
You can find out more on the Revenue.ie website.
What counts as a residential property for stamp duty purposes?
A residential property is any dwelling that is being used to live in. They also including buildings and parts of buildings that:
- can be used as a dwelling
- are in the process of being built, or converted for use as a dwelling
- were built or adapted to be used as a dwelling or no other purpose
What is Farm Consolidation Relief?
It is a stamp duty relief available to Irish farmers who are selling and then buying farmland to consolidate their holdings.
You can find out more about Farm Consolidation relief on the Revenue.ie website.
