How much stamp duty will you have to pay when buying a house?

When you buy a residential property, you must pay stamp duty on the purchase price.  This tax is calculated as follows:-

  • 1% of the market price up to a limit of €1,000,000
  • 2% on any balance of the purchase price above €1,000,000

What is a residential property?

A property is defined as “residential” if it is suitable for use as a dwelling at the date of the transfer.  The law provides that an additional amount of land (called a “curtilage”) can be included in the definition of “residential” property.  This curtilage is intended to cover gardens, outhouses, yards etc and can only comprise up to 1 acre of land.  If the property in question includes a curtilage area of over 1 acre then it will be subject to stamp duty at the rate that applies to non-residential property, which amounts to 7.5% of the market price regardless of the sum in question.

If you are buying a new home, then you will still pay stamp duty but the amount of VAT payable will not be included when calculating the amount of stamp duty involved.  VAT is charged at a rate of 23% so this sum is deducted from the market value of the house and the final amount of stamp duty is charged on the reduced sum.

Has this been useful?  Feel free to get in complete the form below if you would like some more information on the stamp duty that you will need to pay when purchasing your new home.

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