Stamp Duty and Property
The Stamp Duty rates on a transfer of residential property are:
- 1% on the first €1 million
- 2% on excess over €1 million.
These rates apply to instruments (written documents) executed (signed, sealed or both) on or after 8 December 2010.
The rates that applied to instruments executed before that date are in Schedule 1 of the Stamp Duty Manual.
Non-residential property other than policies of insurance
The Stamp Duty rate on a transfer of non-residential property (other than policies of insurance) is 7.5%.
This rate applies to instruments executed on or after 9 October 2019.
Budget 2020 provides for transitional arrangements. Under the arrangements:
- where there is a binding contract in place before 9 October 2019
- the instrument of transfer is executed before 1 January 2020
- the instrument contains a certificate
you pay Stamp Duty at the pre-Budget rate of 6%.
The wording of the certificate is:
"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into before 9 October 2019"
The Finance Act 2017 increased the rate from 2% to 6%.
The 2% rate applied to instruments executed on or after 7 December 2011.
When the rate was increased to 6% the Finance Act 2017 provided for transitional arrangements.
The rates that applied to instruments executed before 11 October 2017 are in Schedule 1 of the Stamp Duty Manual.
Information on the Stamp Duty rate that applies to transfers of shares is in Stamp Duty rates on transfers of shares, stocks and marketable securities.
Mixed use property
You pay Stamp Duty for the residential part at the Stamp Duty rate applicable to transfers of residential property.
You pay Stamp Duty for the non-residential part at the Stamp Duty rate applicable to transfers of non-residential property (other than policies of insurance).
Transfers of policies of insurance
The Stamp Duty rate is 0.1% on an instrument that assigns (transfers) a policy of (life and non-life) insurance. This rate has been in existence since before the Stamp Duties Consolidation Act 1999.
Creation of a non-life policy of insurance
There is a fixed Stamp Duty of €1 when a non-life policy of insurance is created. Your insurance company collects the duty and pays it to Revenue. You do not file a Stamp Duty return.
There is a fixed Stamp Duty of €12.50 on a counterpart (duplicate). The fixed duty applies to instruments executed (signed, sealed or both) on or after 1 January 2002.
John agrees to let a house to Tom for four years at an annual rent of €45,000.
John's solicitor drafts the lease and furnishes two originals to John.
John and Tom execute (sign, seal) both originals.
Tom pays Stamp Duty at the rate of 1% on one of the originals. Tom pays a fixed Stamp Duty of €12.50 on the second original.
The amount of duty paid on one of the original instruments may be less than €12.50. If that is the case, you pay the lesser amount for each counterpart.
Calculating the amount of duty payable
When the Stamp Duty rate is fixed, you pay the fixed rate.
When the Stamp Duty rate is not fixed and there is no gift involved, you multiply the consideration by the appropriate Stamp Duty rate.
Where there is a gift and no consideration, you multiply the market value by the appropriate Stamp Duty rate.
For information on how to calculate the amount when the consideration includes a debt, see Transfers of property.