Stamp duty for residential property in Ireland 2023

When it comes to buying a house there are a number of costs involved in addition to the actual purchase price of the property. Our blog on the hidden costs of buying a house in Ireland details these costs, but for this article we are going to focus on stamp duty and explain why stamp duty can impact your home buying and research journey.

What is stamp duty in Ireland?

Stamp duty is a tax you pay to Revenue when transferring the ownership of property in Ireland. Stamp duty rates for residential properties are 1% on the first €1 million, and 2% on the excess over €1 million. So, if you purchase a house for €300,000, then your stamp duty will amount to €3,000.

If the house is a new build, the stamp duty is the value of the home minus VAT, which is currently 13.5%. That means that if your purchase a new home costing €300,000, the stamp duty you will need to pay is €2,595.

Your solicitor will make the required arrangements for payment to Revenue, so you don’t need to do anything other than have the money to pay the stamp duty.

Who does stamp duty apply to?

Stamp duty applies to anyone purchasing either a residential or commercial property in Ireland. A residential property such as a house, apartment, or a site for the purpose of building on is subject to stamp duty and it also applies to non-residential property such as commercial buildings or land.

When it comes to stamp duty on a site where you plan to build a house or apartment, then you pay stamp duty at the residential property rate on the total cost of the site and the building costs. If you buy a site and don’t intend to build on it, then you pay stamp duty at the non-residential rate.  

As mentioned previously, stamp duty rates for residential properties are 1% on the first €1 million, and 2% on the excess over €1 million. A single rate of 7.5% applies to all non-residential property.

When do you pay stamp duty on residential properties?

When it comes to making your stamp duty payment for the purchase of a house, your solicitor will make the required arrangements for payment to Revenue, so you don’t need to do anything other than have the money to pay the stamp duty. Your solicitor will calculate how much stamp duty is due and arrange payment to Revenue and they will then stamp the property deeds with you as the new owner.

How do you calculate stamp duty rates in Ireland?

The percentages of stamp duty you will have to pay depends on the type of property you are purchasing. For example, if you are buying a residential property, you pay 1% on the first €1 million and 2% on excess over €1 million.

The stamp duty payable for non-residential property purchases is 7.5%, so in this instance you pay 7.5% on the final purchase price.

You can use this handy stamp duty calculator to work out how much stamp duty you will have to pay on your property purchase.

Are there exemptions to stamp duty payments for residential property?

There are some exemptions when you don’t have to pay stamp duty or when the stamp duty is reduced. These include:

• If you are buying your home under the local authority tenant purchase scheme, you pay a maximum amount of €100 in stamp duty.
• There is no stamp duty payable in certain circumstances when the transfer of a property is between spouses and partners.
• 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.
• For non-residential property purchases the rate of 7.5% applies. However, you may be eligible for a refund on a portion of the stamp duty you paid for non-residential land under the stamp duty residential development scheme, if you develop the land for residential use.

What are stamp duty rates on new builds?

Stamp duty is the same for new builds as it for existing properties, however it could work out slightly less if you paid VAT on the purchase of a new build. If you paid VAT on your new house, you only have to pay stamp duty on the base price of the house. For example, if you paid €454,000 (including VAT), you subtract the 13.5% VAT meaning you only pay stamp duty on the base price of €400,000.

Stamp duty rates on multiple properties

In July 2021, an act was introduced that charges 10% stamp duty on property owners who have bought 10 or more properties within one year. So now, if you’re buying multiple properties, you’ll pay a much higher rate for of stamp duty compared to if you are buying one property. If you’re buying 10 or more properties, you pay a total stamp duty worth 10% of the total amount.

Other commonly asked questions

Is there stamp duty on inherited property in Ireland?

You do not pay stamp duty on property you inherit under a will, but you do pay stamp duty if you are gifted a property.

Do you pay stamp duty when you sell a property?

According to Revenue, if you are purchasing a property you are considered to be the accountable person receiving the property, in which case you pay the stamp duty. If you are the seller of the property you don’t pay stamp duty. However, if the property is transferred as a gift, all parties are considered accountable persons.

Will you pay stamp duty on a second property?

You pay stamp duty on every property purchased in Ireland so if you are buying a second home, you are required to pay stamp duty on that too.

Zurich has you covered when buying a house in Ireland

There are a number of factors to consider when buying a house in Ireland and stamp duty as we have mentioned in this article is required so worth thinking about when you are planning to buy a property. To help you with your research into buying a house in Ireland we have also produced a house buying guide article to help you on your journey. When you do buy a house, you will need both home insurance and mortgage protection.

Anyone taking out a mortgage is generally required by their lender to have mortgage protection in place. Many people take out a policy with their mortgage provider, but it's always a good idea to shop around. Not only does this allow you to see the best premium available to you, but it ensures that you get the most suitable product for your needs. Our mortgage protection quote calculator will give you an idea of the cost of cover you will need.

When it comes to home insurance, the cost of your home insurance premium will differ depending on the sums insured of your property and your contents. You can use the house rebuild calculator from the Society of Chartered Surveyors to calculate the rebuild cost of your home. This will give you a good idea of how much you should be insuring your house for. You can get a quote for Zurich home insurance here.