Stamp Duty For Second Hand Homes

Stamp Duty is primarily a tax on documents. For the most part, these are documents used in the transfer of property or which create rights for the parties concerned. For example, when you purchase a second-hand house, stamp duty is chargeable on the conveyance document which transfers ownership to you. The following rates of stamp duty are charged on second-hand residential properties for both first time-time buyers and owner-occupiers/ investors respectively:

First Time Buyer – New or Second Hand House

Value of Transfer Rate of Stamp Duty First €125,000 Nil Next €875,000 7% Excess over €1,000,000 9%

Other Owner Occupiers – Investors

Value of Transfer Rate of Stamp Duty First €125,000 Nil Next €875,000 7% Excess over €1,000,000 9%

Stamp Duty New Homes

The rate of stamp duty applicable to new homes is dependent upon the floor area size of the house/apartment in question. (a) Houses/Apartments less than 125 sq. metres For persons buying new homes/apartments, there is a full exemption from stamp duty for first-time buyers and owner-occupiers (but not investors) provided the structure has a floor area certificate issued by the Department of the Environment. The house or apartment must not have been occupied prior to purchase and the floor area must not exceed 125 sq. metres (1,346 sq. feet). In order to avoid a clawback, the purchaser must occupy the house or apartment for a period of five years commencing on the date of the purchase deed and must not derive any rent from the premises during this 5 year period. If it is sold, no clawback should arise.(b) Houses/Apartments greater than 125 sq. metres First-time buyers and owner-occupiers who purchase new houses or apartments greater than the specified floor area limit can avail of a reduction in the amount of stamp duty payable. Stamp duty is assessed on the greater of (a) the site price or (b) 25% of the total of the site cost and building costs (exclusive of VAT) at the appropriate reduced rate of stamp duty for a first time purchaser or non-first time purchaser. An owner-occupier purchases a new house measuring 150 sq. metres at a cost of €1,135,000 including VAT (site cost €150,000). The purchase price chargeable to stamp duty is 25% of the actual purchase price exclusive of VAT, in this case €250,000 [€1,135,000 – (VAT on original purchase price @ 13.5%) X 25%]. Therefore, the stamp duty payable on this home is: €250,000 x 3% = €7,500

Rates applicable to new houses/apartments greater than 125 sq. metres taking into   account the restricted consideration

Value of Transfer Rate of Stamp Duty €0 – 127,000 Exempt Exempt €127,01-190,500 Exempt 3% €190,501 – 254,000 Exempt 4% €254,001 – 317,500 Exempt 5% €317,501 – 381,000 Exempt 6% €381,001 – 635,000 Exempt 7.5% > €635,001 Exempt 9%

Investors who purchase a new property will pay the same rate of stamp duty as they would on a second-hand property and these rates are laid out in the previous section “Second-hand homes”. For contracts entered into prior to 6 December 2001, a flat rate of 9% will apply.

Stamp Duty – Sites & Land

Value of Transfer Rate of Stamp Duty €0 – 10,000 exempt €10,000-20,000 1% €20,000 – 30,000 2% €30,000 – 40,000 3% €40,000 – 70,000 4% €70,000 – 80,000 5% €80,000 – 100,000 6% €100,001 – 120,000 7% €120,001 – 150,001 8% > €150.000 9%

Rent a room tax scheme:

Where an owner occupier rents rooms in thier home, gross annual rents of €7618 can be taken tax free.

Capital Gains tax

20% applies to most disposals Allowed to deduct the cost or value of acquiring the asset indexed up to the present day value Annual exemption of €1270 per individual.