Rules

Stamp duty on new houses and apartments

Owner-occupiers of new houses/apartments are exempt from stamp duty, provided that the area of the house or apartment does not exceed 125 sq. metres (1,346 sq. feet) and a Floor Area Compliance Certificate has been issued. The house or apartment must not have been occupied prior to its purchase. It must be occupied as the owner's main place of residence for a period of 5 years from the date of the purchase deed. However if you sell the house during this period you do not have to repay stamp duty.

If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.

Stamp duty rates for first-time buyers

Stamp duty rates for first-time buyers who are owner-occupiers of new or second-hand residential property were changed significantly in June 2007. The change affects any legal instruments (for example, the deed of conveyance or transfer or lease giving effect to the contract) relating to a first-time buyer buying a residential property on or after 31 March 2007.

First-time buyers who are owner-occupiers of new and second-hand residential property do not pay stamp duty.

Clawback of stamp duty relief

A stamp duty clawback arises where rent, other than under the 'Rent a Room scheme' is obtained within the 5 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 obtaining the benefit of the reduced rates.

Reduction of claw-back period: for purchase deeds dated on or after 5 December 2007 the clawback period is reduced to 2 years. Where a property was purchased before 5 December 2007 but was rented on or after that date, there will be no claw back of stamp duty relief if it is rented in the 3rd, 4th or 5th year of ownership.

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 6th April, 2001 for letting of furnished accommodation in part of the house.

Stamp duty rates for non-owner-occupiers

Non-owner-occupiers are liable for stamp duty on both new and second-hand houses or apartments. The same rates of stamp duty apply to investors as to non-first time owner-occupiers. From 5 December 2007 the stamp duty rates for residential property have been revised and simplified - see 'Rates' below.

Transfer of property between relatives

Stamp duty is payable at half the normal rate applicable if there is a transfer of property (other than shares) to certain relatives (for example, a parent, grandparent, step-parent, child, brother, sister, half-brother, half-sister, aunt, uncle, niece or nephew). This relief is not available on leases or on transactions involving cousins and/or in-laws.

Site transfers from parent to child

Stamp duty and Capital Gains Tax do not apply where a parent transfers a site to a child. The site must be for the construction of the child's principal private residence and the market value of the site must not be greater than €500,000 for disposals made on or after 5 December 2007. The exemption threshold is €253,947.62 for disposals made before 5 December 2007. A parent can only transfer one site to each child to take advantage of this exemption. If the child then sells the site without the principal private residence being built and lived in for 3 years, there will be a clawback of the capital gains tax relief permitted. There will be no clawback if the child dies.

Stamp duty relief for exchange of farmland for farm consolidation purposes

The Finance Act 2005 (pdf) provided a new stamp duty relief for an exchange of farmland between two farmers. This applies when farmers exchange land in order to consolidate their holdings. The stamp duty is applied to the difference in value between the lands concerned. Formerly each farmer was liable to the full stamp duty on property s/he receives. This once-off relief applies for a two year period and full details, including the qualifying conditions, are set out in Revenue's Stamp Duty Farm Consolidation Relief (pdf) leaflet.