Stamp duty on property

Introduction

Stamp duty is charged when you transfer property. It is charged on the written documents that transfer ownership of land and buidings. In general, the only factor affecting the amount of stamp duty is the value of the property.

Stamp duty applies to residential property such as houses, apartments or sites with agreement to build. It is also payable on non-residential property, that is, land or housing sites without residential buildings - see Rates below.

Rules

“Residential property” includes houses, apartments and any site that is bought with a connected agreement to build residential property on it.

  • If you buy a site in connection with (or as part of) an arrangement to build a house or apartment on it, then stamp duty will be charged at the residential property rate on the total of the site cost and the building cost

  • If you buy a site with no connected arrangement to build a house or apartment on it, then stamp duty will be charged on the site cost at the non-residential property rate

There is information (pdf) on revenue.ie on how large gardens, car parking spaces and marina berths are treated for stamp duty purposes. You can also read more on revenue.ie about stamp duty on property in general.

Transfers between spouses, civil partners and cohabitants

In general, the following transactions are exempt from stamp duty:

  • All transfers/leases of property between spouses and civil partners (unless the transfer is a subsale – a sale carried out within the process of a larger sale)
  • Property transferred between former spouses/civil partners under a court order, following a divorce or the dissolution of a civil partnership
  • Property transferred by a cohabitant to his or her cohabitant, on or after 1 January 2011, under a Property Adjustment Order

Read more in our document on family and shared homes.

While the above transactions are in general exempt from stamp duty, the exemption does not apply if any other person is a party to the instrument.

Relief on farmland transfers within a family

A special consanguinity relief is available when transferring farmland between certain family members. To qualify for this relief you must be related to the person transferring the land and do one of the following:

  • Farm the land yourself for at least 6 years.
  • Lease the land to someone else for a minimum of 6 years, so they can farm it.

The person farming the land must also do one of the following:

  • Have a relevant agricultural qualification, or get one within four years of the date they got the land.
  • Spend at least 50% of their time farming land (including this land transfer).

Related persons include parents, grandparents, step-parents, children, brothers, sisters, half-brothers, half-sisters, aunts, uncles, nieces and nephews. The full list of related persons who qualify for the relief is in Schedule 1 of the Stamp Duty Tax and Duty Manual (pdf).

Consanguinity relief provides for a reduced stamp duty rate of 1% on family farm transfers. This relief runs until 31 December 2023.

Further detailed requirements about qualifying for this relief are on revenue.ie.

Farm consolidation relief

This relief is for farmers who buy and sell agricultural land in order to consolidate their holdings and improve the viability of their farms. It provides for a stamp duty rate of 1% on these transactions. This relief is due to expire on 31 December 2022. Further information about Farm Consolidation Relief is available on revenue.ie.

Clawback of stamp duty relief

A stamp duty clawback arises where rent, other than under the Rent a Room scheme, is obtained within the 2-year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of getting the benefit of reduced stamp duty rates.

Under the Rent a Room scheme, there is no stamp duty clawback where rent is received by the person in occupation of the house or apartment on or after 6 April 2001 for letting of furnished accommodation in part of the house.

Rates

Residential property

Property value Rate
Up to €1,000,000 1%
Balance 2%

Exceptions

If you are buying your home under the local authority tenant purchase scheme, a maximum amount of €100 is charged in stamp duty.

There is no stamp duty payable on certain transfers between spouses, civil partners and cohabitants – see above.

If you paid VAT on your house, you only have to pay stamp duty on the base price of the house – before the VAT was added. So, for example, if you paid €454,000 (including VAT) for your new house, this is made up of the base price of €400,000 plus 13.5% VAT (€54,000) and you only pay stamp duty on the base price of €400,000. Read more in our document on Value Added Tax.

Non-residential property

A single rate of 6% on all non-residential property was introduced on in Budget 2018. In Budget 2020, this rate was increased to 7.5% for conveyances or transfers of non-residential property and leases that are executed on or after 9 October 2019.

The Stamp Duty Residential Development Refund Scheme allows for a refund on a portion of the stamp duty you paid for non-residential land, if you subsequently develop the land for residential use. In Budget 2021, it was announced that the scheme will be extended to 31 December 2021, and the time allowed between commencement and completion of a qualifying project is extended by 6 months to 2 years and 6 months.

Stamp duty (payable by the lessee) charged on the premium component of a lease of non-residential property also increased from 6% to 7.5% in Budget 2020. There is no change in the rate of stamp duty on the rent component of a lease.

How to apply

Your solicitor will calculate how much stamp duty is due and request this from you before the sale is closed. The amount is paid to the Revenue Commissioners, who place a stamp on the property deeds. Without this stamp, the deeds cannot be registered.

Where to apply

National Stamp Duty Office

New Stamping Building
Dublin Castle
Dublin 2
Ireland

Locall: 1890 482582
Page edited: 22 April 2021