Stamp duty in Ireland: What you need to know

Stamp duty is a tax that applies when you buy property or land in Ireland. It is calculated as a percentage of the property's value and is payable by the purchaser. The tax was introduced to generate revenue for the government and to regulate property market activity.

The rate of stamp duty depends on the type of property being purchased:

• Residential property: The standard rate is 1% on the first €1 million and 2% on any amount above €1 million.
• Non-residential property and land: A rate of 7.5% applies to these purchases.

Additional surcharges may apply in specific scenarios, such as when residential property remains vacant for a prolonged period.

The responsibility for paying stamp duty falls entirely on the buyer of the property or land. This payment must be made to Revenue within 30 days of completing the purchase to avoid penalties or interest.

First-time buyers are not automatically exempt from stamp duty in Ireland. However, there may be reliefs or exemptions available under certain schemes, such as the Help to Buy scheme, which assists with the cost of purchasing a new build. It's essential to check with your solicitor or financial advisor to determine if any relief applies to your situation.

Stamp duty on houses is calculated based on the property's value:

• For properties valued under €1 million: The rate is 1% of the purchase price.
• For properties valued over €1 million: The rate is 1% on the first €1 million and 2% on the amount above €1 million.

For example, if a house costs €1.5 million, the stamp duty would be €10,000 on the first €1 million (1%) and €10,000 on the remaining €500,000 (2%), totalling €20,000.

The stamp duty rate for land is 7.5%, whether the land is for agricultural, commercial, or development purposes. Additional surcharges may apply if land designated for residential use remains undeveloped.