Property other than stocks and marketable securities and policies of (life and non-life) insurance

Residential Property

Conveyances/Transfers of 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

The rates of duty applicable to instruments executed on or after 8 December 2010 are:

Aggregate Consideration Rate of Duty
First €1,000,000 1%
Excess over €1,000,000 2%

Examples of how to calculate the duty due

Example 1
House/apartment purchased on 1 February 2015
Consideration: €1,200,000
Stamp duty payable = €14,000
[(€1,000,000 @ 1%) + (€200,000 @ 2%)]

 

Example 2
House/apartment purchased on 2 March 2015
Consideration: €125,000
Stamp duty payable = €1,250
[€125,000 @ 1%]

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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 in February 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]

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Former Rates

For information on rates of stamp duty applicable to instruments executed before 8 December 2010, see Former Rates of Stamp Duty.

Conveyances/Transfers of 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. It includes (but is not limited to) sites, offices, factories, other business premises, shops, public houses, land and goodwill attaching to a business.

Current Rates

The rate of stamp duty applicable to instruments executed on or after 7 December 2011 is 2%.

Purchase of a commercial unit

Example 4
Date of instrument: 6 April 2015
Consideration: €90,000
Stamp duty payable: €1,800
[€90,000 @ 2%]

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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 5
Date of instrument: 15 April 2015
Consideration: €50,000
Stamp duty payable: €1,000
[€50,000 @ 2%]

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 6
Date of instrument: 6 May 2015
Site cost: €50,000
Building cost: €165,000
Aggregate cost: €215,000
Stamp duty payable: €2150
[€215,000 @ 1%]

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Former Rates

For information on rates of stamp duty applicable to instruments executed before 7 December 2011, see Former Rates of Stamp Duty.

Conveyances/Transfers of Mixed Property

Where a transaction relates to a mixed property (i.e. a property which consists of residential and non-residential 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.

Revenue have made available a leaflet to assist in the apportionment of the consideration, see pdfThe Apportionment form (PDF, 17KB)

Example 7
Shop with connected apartment
Date of instrument: 30 May 2015
Consideration: €1,200,000
Apportioned: Shop = €900,000 + Apartment = €300,000
Stamp duty payable: €21,000
[(€900,000 @ 2%) + (€300,000 @ 1%)]

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Leases

A lease is chargeable to stamp duty on both the premium (or fine) and the rent payable under the lease.

The rate chargeable on the premium is 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.

Counterparts

Each counterpart (or duplicate) of an original instrument chargeable with duty is liable to a fixed duty of €12.50. Where the duty chargeable on the original instrument is less than €12.50 the duty on the counterpart is the same amount as the duty chargeable on the original.

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 exclusive of any VAT chargeable 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 amount or value of the consideration (section 30 of the Stamp Duties Consolidation Act 1999).

A lease may also be deemed to operate as a gift where the lease was not executed in good faith and for valuable consideration (section 54 of the Stamp Duties Consolidation Act 1999)

This document is intended for guidance only. While every effort is made to ensure the accuracy of the content, it does not purport to be a legal interpretation of the relevant provisions and has no binding in law. Responsibility cannot be accepted for any liability incurred or loss suffered as a consequence of relying on any matter published herein.

Issued by the National Stamp Duty Office – June 2015

(Adobe Acrobat Reader PDFExternal link)

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