Stamp Duty and Property
What is non-residential property?
Non-residential property for Stamp Duty purposes includes:
- agricultural and non-agricultural land
- sites (other than sites purchased with a connected agreement to build a house or apartment)
- commercial or business premises, including offices, factories, shops and public houses
- the creation or transfer of options over land
- interests in land (such as wayleaves or other rights to lay cables, pipes, wires or other conduits)
- easements (a right over someone's property such as a right of way)
- the creation or transfer of a life interest
- the creation or transfer of a remainder interest
- business assets like goodwill or book debts
- shares, stocks and marketable securities
- policies of insurance.
Buying a site
A site is non-residential property. You pay Stamp Duty on the cost of the site.
You may be able to claim a refund of some of the Stamp Duty you pay. For more information, see Residential Development Stamp Duty Refund Scheme.
However, if you buy a site with a connected agreement to build residential property on it, the site is residential property.
If you buy a site with a connected building agreement for:
- an industrial building
- a commercial building
you pay Stamp Duty on the site cost and the cost of the building. These costs are exclusive of any VAT.
The instrument (written document) transferring the site may contain a right of way to access the site. Once you have paid Stamp Duty on the instrument, Stamp Duty is not separately chargeable on the right of way.
Agreements or contracts to buy property situated in Ireland
Stamp Duty is generally not chargeable on written agreements or contracts to buy property. There are some exceptions to this. Stamp Duty is chargeable on certain written:
- agreements to buy business assets (Section 31 of the Stamp Duties Consolidation Act, 1999)
- 'resting in contract' agreements (Section 31A of the Stamp Duties Consolidation Act, 1999)
- licence agreements (Section 31B of the Stamp Duties Consolidation Act, 1999).
Transfers of property deriving its value from immovable property
See Certain property deriving its value from immovable property.
Assignments (Transfers) of policies of (life and non-life) insurance
If the risk to which the policy relates is located in Ireland, you pay Stamp Duty on a written assignment of the policy.
- Example 1
ABC Ltd sells extended warranty insurance.
Mr Murphy, a retailer, acts as intermediary for ABC Ltd by selling the policies to individuals purchasing goods from him.
If those individuals (the policyholders) have their habitual residence in Ireland the risk is located in Ireland. Stamp Duty is chargeable.
- Example 2
DEF is a Dutch company with its head office in The Netherlands.
DEF takes out a public liability policy with a UK insurer through an Irish insurance broker.
The policy is in respect of possible liability should DEF’s customers be injured during a funfair that DEF is organising in Dublin.
The risk is not located in Ireland: DEF, the policyholder, is a legal person with its head office outside Ireland. Stamp Duty is not chargeable. You do not file a Stamp Duty return.
- Example 3
GHI is a German company with its head office in Berlin.
It has a branch in Dublin.
The Dublin branch takes out a public liability policy in respect of injury to any members of the public visiting its office in Dublin.
The risk is located in Ireland as the policyholder to which the policy relates is located in Ireland. Stamp Duty is chargeable.
You may be getting a loan to buy property. It may be a condition of the loan offer that:
- you take out life assurance
- assign the life policy to the lender as security for the loan.
Where you assign a policy of life insurance as security for a loan, Stamp Duty is not chargeable. You do not file a Stamp Duty return. This applies to instruments executed on or after 7 December 2006.
Next: Certain property deriving its value from immovable property