Property
Residential Property
The most common charge to stamp duty that affects individuals is the stamp duty on the purchase of houses and apartments. The amount of stamp duty payable depends on the price paid (or the market value where the price paid is less than market value) for the property.
Current Rates of Duty on Residential Property
Example 1
House/apartment
Consideration: €1,200,000
Stamp duty payable = €14,000
[(€1,000,000 @ 1%) + (€200,000 @ 2%)]
Example 2
House/apartment
Consideration: €125,000
Stamp duty payable = €1,250
[€125,000 @ 1%]
Aggregation
Aggregation applies in determining the stamp duty liability where a transaction forms part of a larger transaction or of a series of transactions involving residential property. The stamp duty liability is calculated on the basis of the aggregate consideration. The duty is then apportioned between the separate properties that are transferred by separate instruments and the apportionment is pro rata to the consideration for each property.
Example 3
Two houses are purchased for a total of €1,200,000 (€800,000 for House A and €400,000 for House B).
Stamp duty is calculated on the aggregate consideration of €1,200,000.
Aggregate Consideration = €1,200,000
Stamp duty payable: €14,000
[Apportionment of duty between House A and House B is as follows:
House A (€14,000 x €800,000) / €1,200,000 = €9,333
House B (€14,000 x €400,000) / €1,200,000 = €4,667]
Finance Act 2011
Finance Act 2011 confirmed the changes to the stamp duty regime, which the Minister for Finance announced in his Budget speech on the 7 December 2010. These changes included a new rates schedule for stamp duty on residential property and the abolition of certain reliefs and exemptions on residential property. The following residential property reliefs were abolished with effect from 8 December 2010:
- Section 91A of the Stamp Duties Consolidation Act 1999 – Exemption for purchase of a new house/apartment not exceeding 125 square metres by an owner-occupier.
- Section 92 of the Stamp Duties Consolidation Act 1999 – Exemption for purchase of a new house/apartment where the floor area exceeds 125 square metres by an owner-occupier.
- Section 92B of the Stamp Duties Consolidation Act 1999 – Exemption for purchase of a house/apartment by a first-time buyer.
- Consanguinity relief on residential property.
Transitional arrangements
Transitional arrangements will apply where, as a result of the new rates or the termination of the reliefs or exemptions, a taxpayer is disadvantaged compared to the stamp duty treatment applicable prior to 8 December 2010. The transitional arrangements will apply where an instrument is executed on or after 8 December 2010 and before 1 July 2011 solely in pursuance of a binding contract that had been entered into prior to 8 December 2010.
To avail of the benefit of the transitional arrangements, the instrument should contain the following certificate
"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into prior to 8 December 2010".
Example 4
First-time buyer, entered into a binding contract to purchase a property for €500,000 before the 8 December 2010. The deed transferring the property is executed before the 1 July 2011.
Stamp duty payable = Nil as first time buyer relief is available.
Example 5
Owner-occupier, entered into a binding contract to purchase a newly built house for €500,000 before the 8 December 2010. The deed transferring the property is executed on the 30 June 2011.
Stamp duty payable = Nil as owner occupier relief is available.
Example 6
Owner-occupier, entered into a binding contract to purchase a newly built house for €500,000 before the 8 December 2010. The deed transferring the property is executed on the 30 July 2011.
Stamp duty payable = €5,000
[€500,000 @ 1%]
Note that clawback provisions will continue to apply to transfers where FTB or OO relief claimed.
Clawback
Where stamp duty relief is claimed, a clawback arises if rent is obtained from the letting of the house or apartment within a period of 2 years from the date of the conveyance or transfer, other than under rent a room arrangements. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property. A clawback will not arise where the property is sold to an unrelated third party during the 2-year period.
Form to notify Revenue of receipt of rent (PDF, 94KB)
Example 7
First-time buyer, entered into a binding contract to purchase a property for €500,000 before the 8 December 2010. The deed transferring the property is executed before the 1 July 2011.
Stamp duty payable = Nil as first time buyer relief is available.
Property is rented out within two years of the date of the deed.
Clawback payable: €5,000
[€500,000 @ 1%]
Example 8
First-time buyer, entered into a binding contract to purchase a property for €500,000 before the 8 December 2010. The deed transferring the property is executed before the 1 July 2011.
Stamp duty payable = Nil as first time buyer relief is available.
Property is rented out two years after the date of the deed.
Clawback payable: €0 as after two year period.
Non-residential property
Non-residential property includes all types of property other than residential property, stocks or marketable securities and policies of insurance or life insurance.
Rates of stamp duty on non-residential property
Example 9
Commercial unit
Consideration: €90,000
Stamp duty payable: €5,400
[€90,000 @ 6%]
Purchase of a site
Where an individual purchases a site with no connected agreement to build a house or apartment, the transfer of the site is chargeable at the appropriate rate for non-residential property.
Example 10
Site
Consideration : €50,000
Stamp duty payable: €2,000
[€50,000 @ 4%]
Where an individual purchases a site in connection with, or as part of, an arrangement to build a house or apartment on that site then stamp duty will be charged on the aggregate amount of the site cost and the building cost at the appropriate residential property rate.
Example 11
Site with connected building agreement for a house or apartment
Site cost €50,000
Building cost €165,000
Aggregate cost: €215,000
Stamp duty payable: €2150
[€215,000 @ 1%]
Site to child relief
Finance Act 2011 abolished section 83A of the Stamp Duties Consolidation Act 1999 which provided for a stamp duty relief on the transfer of a site from a parent to a child.
Mixed property
Where a transaction relates to a mixed property, the consideration must be apportioned between the residential and non-residential elements. The residential property is not aggregated with the non-residential portion for the purposes of determining the appropriate rate of stamp duty.
The
Apportionment form (PDF, 89KB) is available on the Revenue
website.
Example 12
Shop with connected apartment
Consideration: €1,200,000
Apportioned: Shop = €900,000 + Apartment = €300,000
Stamp duty payable: €57,000
[(€900,000 @ 6%) + (€300,000 @ 1%)]
VAT and stamp duty
Stamp duty is assessed on the VAT exclusive consideration, Sections 48 and 56 of the Stamp Duties Consolidation Act 1999 provide that the chargeable consideration for stamp duty purposes is to exclude any VAT chargeable under Section 2 of the VAT Act 1972 on the sale or lease.
Where VAT is included in the consideration, it should be deducted before calculating the charge or rate of stamp duty.
Gifts
A transfer by way of gift is chargeable the same way as a transfer on sale, with the market value of the property being substituted for the consideration.
Leases
A lease is chargeable to stamp duty on both the premium (or fine) and the rent payable under the lease.
The duty chargeable on the premium is at the rate for residential or non-residential property as appropriate.
| Residential and Non-Residential Property | Rate |
|---|---|
| Lease for a term not exceeding 35 years or for any indefinite term | 1% of the average annual rent |
| Lease for a term exceeding 35 years but not exceeding 100 years | 6% of the average annual rent |
| Lease for a term exceeding 100 years | 12% of the average annual rent |
A lease of a house or apartment for a term not exceeding 35 years or for any indefinite term and where the rent does not exceed €30,000 per annum is exempt from stamp duty.
Certificates required in deeds
For deeds executed before 8 December 2010, please see leaflet
SD10A (PDF, 292KB).
For deeds executed after 8 December 2010, please see leaflet
SD10B (PDF, 130KB).
There is also an easy-to-use electronic Guide to the certificates to be included in instruments for most residential and non-residential property transactions. The electronic guide is available on the Revenue website:
Certificates required in deeds.
Contact details
For further information, please contact:
The Stamping Office,
New Stamping Building,
Dublin Castle,
Dublin 2
Lo-call: 1890 48 25 82
email: dublinstamp@revenue.ie
Updated: February 2011
