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Residential Development Stamp Duty Refund Scheme

  1. Overview
  2. How can you claim?
  3. When can you claim?
  4. Building work
  5. Percentage tests

When can you claim?

You can claim a refund when you commence building work on a single dwelling unit.

You can claim a refund in respect of each phase of a multi-unit development when: 

  • you commence building work on the phase
  • and
  • one of the '75% tests' is satisfied for that phase.

A phase of a development may not satisfy either ‘75% test’. However, the entire development may satisfy one of the ‘75% tests’. In this case you can claim a refund on the entire development as soon as you commence building work on the last phase.

You must claim your refund within four years of when your Local Authority acknowledges your Commencement Notice or 7 Day Notice as valid. Claims for refunds outside the four year time limit will not be accepted. 

  • Example 1

    Mary buys a site of 0.2 hectares for €100,000. The deed of transfer is executed on 12 February 2018. Mary files a Stamp Duty return and pays Stamp Duty at the rate of 6% (€6,000).

    On 13 March 2018 she applies for planning permission to build a house on the site. Planning permission is granted on 1 May 2018. She lodges the Commencement Notice with her Local Authority on 15 June 2018.

    The Local Authority acknowledges the Commencement Notice as valid on 20 June 2018. Mary begins building.

    Mary does not have to satisfy the ‘75% test’. The house is a single dwelling unit. The house and curtilage occupy an area of 0.2 hectares. Mary can claim a refund of two-thirds (€4,000) of the Stamp Duty paid (€6,000) as soon as building commences.

  • Example 2

    Rory buys a site of 1 hectare for €150,000. The deed of transfer is executed on 12 February 2018. Rory files a Stamp Duty return and pays Stamp Duty at the rate of 6% (€9,000).

    On 13 March 2018 he applies for planning permission to build a house on the site. Planning permission is granted on 1 May 2018. He lodges the Commencement Notice with his Local Authority on 15 June 2018.

    The Local Authority acknowledges the Commencement Notice as valid on 20 June 2018. Rory begins building. 

    Rory does not have to satisfy the ‘75% test’. However, the house and curtilage occupy an area of 0.25 hectares. Rory can claim a refund in respect of the Stamp Duty paid on 0.25 hectares as soon as building commences.

    Rory will get a refund of €1,500 (€9,000 ÷ (0.25/1) x (2/3)).

  • Example 3

    MNP DAC buys a 1-hectare site on which it plans to build 20 houses in two phases. The deed of transfer is executed on 11 December 2017.

    MNP DAC files a Stamp Duty return and pays Stamp Duty at the rate of 6%. The Stamp Duty paid is €60,000.

    On 13 January 2018 MNP DAC applies for planning permission to build 20 houses on the site. Planning permission is granted on 15 May 2018.

    MNP DAC lodges its Commencement Notice for Phase 1 with its Local Authority on 14 June 2018.

    The Commencement Notice for Phase 1 covers an area of 0.4 hectares. Phase 1 will meet the footprint test.

    The Local Authority acknowledges the Commencement Notice as valid on 24 June 2018.

    MNP DAC begins building Phase 1. MNP DAC can claim a refund in respect of the Stamp Duty paid on 0.4 hectares as soon as building commences.

    MNP DAC will get a refund of €16,000 (€60,000 ÷ (0. 4/1) x (2/3)).

    Phase 2 (covering 0.6 hectares) may also meet the relevant ‘75% test’. If it does, MNP DAC may wait until Phase 2 has commenced to apply for a refund in respect of both phases.

  • Example 4

    XYZ DAC buys a 1-hectare site on which it plans to build 50 apartments in three phases. The deed of transfer is executed on 11 February 2018. XYZ DAC files a Stamp Duty return and pays Stamp Duty at the rate of 6%.

    On 13 March 2018, XYZ DAC applies for planning permission to build 50 apartments on the site. Planning permission is granted on 23 May 2018. XYZ DAC lodges its Commencement Notice for Phase 1 with its Local Authority on 14 June 2018.

    The Local Authority acknowledges the Commencement Notice as valid on 24 June 2018. XYZ DAC begins building.

    XYZ DAC may apply for a refund in respect of Phase 1 as soon as building commences. Phase 2 and, or Phase 3 may also meet the relevant ‘75% test’.  If Phase 2 and, or Phase 3 do, XYZ DAC may wait until Phase 3 has commenced to apply for a refund for all phases.

Next: Building work

Published: 11 January 2022 Print this page

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