Stamp Duty and leases

Rates

Average annual rent

You must pay Stamp Duty on the average annual rent. The Stamp Duty rate you pay will depend on the period of the lease. The rates are set out below.

Stamp Duty rate on the average annual rent*
Period of the leaseStamp Duty rate on the average annual rent

Not exceeding 35 years, or indefinite

1%

Exceeding 35 years, but not exceeding 100 years

6%

More than 100 years

12%

*These rates predate the Stamp Duties Consolidation Act, 1999.

Premium

The rate you pay on a premium depends on the type of property covered by the lease. If the property is residential, you must pay the same Stamp Duty rate that you would pay on a transfer of residential property. If the property is non-residential, you must pay the same Stamp Duty rate that you would pay on a transfer of non-residential property.

The current Stamp Duty rates are set out below.

Stamp Duty rates on land and buildings
Type of propertyConsiderationStamp Duty Rate
Residential First €1 million 1%

Residential

 

Relevant residential unit withing the meaning of Section 31E of the Stamp Duties Consolidation Act, 1999*

Excess over €1 million

 

 

 

2%

 

 

10%

 

Non-residential - 7.5%

Note

*10% rate

Where 10 or more properties are purchased by way of a lease by a person (or connected person) within 12 months, those properties may be regarded as "relevant residential units".  Further information is available in the Tax and Duty Manual Section 31E: Stamp Duty on certain acquisitions of residential property

Fixed duty

You must pay a fixed Stamp Duty of €12.50 for:

  • a lease made at a later date for an agreement already stamped
  • any other lease relating to Irish land and buildings, or a right or interest in Irish land and buildings
  • and
  • a rent review clause. (You must also pay Stamp Duty on the lease containing the rent review clause. However if the lease containing the rent review clause is exempt from Stamp Duty, then the rent review clause is also exempt.)

Purchasing an apartment by way of a lease

A charge to Stamp Duty under the Lease head of charge arises on the creation of a lease and in certain other limited circumstances.  However, a subsequent assignment or transfer of a leasehold interest is chargeable to Stamp Duty under the Conveyance or Transfer on Sale head of charge.

Next: Paying Stamp Duty on residential leases