Stamp Duty

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

A rate of 2% applies to all non residential property. The 2% rate also applies to goodwill, loans and other property to the extent that it is not already exempt from duty.

Residential Property – Rate Structure

The rate of SD that applies to residential property is as follows:

Property Value                    Rate

Up to €1,000,000                        1%

Over €1,000,000                         2%

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 maintained until the end of 2014.  Until its abolition, an intra-family transfer of non-residential property will attract a 1% stamp duty rate.
  • 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).
  • 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 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. A stamp duty charge arises on a contract or agreement for sale of an estate or interest in land in the State or a license or a long lease where 25% or more of the consideration has been paid under the contract or agreement.

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)

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