Stamp duty is one of the key additional expenses when buying a home so its important to understand how it works and to take into account when planning your finances.
- What is Stamp Duty?
- What rate of stamp duty do I need to pay?
- Stamp Duty Rates on Lands / Sites
- When and how do I pay Stamp Duty?
- Download Stamp Duty Rate Changes 2010 Information Document
What is stamp duty?
Stamp duty is a tax that you pay to the government when changing documents on a property. These documents specify ownership of the property. When planning to buy property you should factor this extra cost into your calculations both of the purchase price of the property and the amount you will need to borrow.
What rate of stamp duty do I need to pay?
As of December 8th 2010, Stamp Duty on residential property has been fundamentally reformed and simplified. It has been reduced to a flat rate of 1% on properties values up to 1 million and 2% on any amounts over 1 million. There will no longer be a distinction between new versus second hand properties or first time and non-first time buyers. There are no changes to the commercial property stamp duty position, which is largely at a rate of 6%. Stamp duty on land remains unchanged.
| Property Vaue | Rate of Duty |
| First 1,000,000 | 1% |
| Excess over 1,000,000 | 2% |
Stamp Duty Rates on Lands / Sites
It is important to note here that there is no reduction in stamp duty rate on the purchase of land or sites. The same rates apply to all buyer types.
| Chargeable Consideration (Price) | Stamp Duty Rate |
| 0 - 10,000 | 0% |
| 10,001 - 20,000 | 1% |
| 20,001 - 30,000 | 2% |
| 30,001 - 40,000 | 3% |
| 40,001 - 70,000 | 4% |
| 70,001 - 80,000 | 5% |
| 80,001 - 100,000 | 6% |
| 100,001 - 120,000 | 7% |
| 120,001 - 150,000 | 8% |
| 150,001 | 9% |
When and how do I pay stamp duty?
Your solicitor will calculate how much stamp duty is due and request this from you prior to the closing of the sale. The amount is paid to the Revenue Commissioners who place a stamp on the property deeds. Without this stamp, the deeds cannot be registered.