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Points
of Interest:
1.
What is Stamp Duty?
Stamp duty is the tax payable to the government for
changing the documents that specify who owns a particular
property.
2.
How much Stamp Duty will I have to pay?
Depending on your status as a buyer and the type of
property you are purchasing, stamp duty can form a considerable
expense. The amount of stamp duty applicable to your
purchase depends on several key factors:
Status
as a buyer:
|
First time buyer,
Owner-occupier or Investor |
| Property
Type: |
Second-hand
or New home |
| Floor
Area: |
The
size of the property |
|
|
3. What is my status as a buyer?
· First time buyers:
A first time buyer is a person who has not previously
purchased or built a house or apartment anywhere in the
world and who is purchasing the property for use as their
main residence and not buying the property in order to
rent it out as an investor.
· Owner-occupiers:
An owner occupier is a person who purchases an apartment
or house for use as their principal residence.
· Investor:
A person buying a property as investment, examples include
a second home, or purchasing a property in order to let
it out.
4.
What type of home are you buying - how much Stamp Duty
applies to you?
New Homes
First-time buyers do not have to pay any stamp duty on
new homes.
For Owner occupiers the following rules apply:
- On a property where the floor area is less than 125
sq. metres - No stamp duty
- On a property where the floor area is greater than 125
sq. metres, stamp duty is payable at the following rates,
but is based on the greater of either the site value or
25% of the VAT exclusive purchase price:
Property
Value
|
Rate |
| Up
to €125,000 |
Exempt |
| Next
€875,000 |
7% |
| Balance |
9% |
Second hand homes
First-time buyers do not have to pay any stamp duty on
second hand homes.
Owner occupiers and Investors pay stamp duty at the following
rates:
Property
Value
|
Rate |
| Up
to €125,000 |
Exempt |
| Next
€875,000 |
7% |
| Balance |
9% |
5.
When is Stamp Duty payable?
When closing the sale, your solicitor will calculate
the exact stamp duty due and you will be required to
pay this amount to the Revenue Commissioners. Your solicitor
will usually arrange this payment.
6. Stamp Duty on Land
and Sites
Stamp duty for the purchase of land & sites is based
solely on the price and there are no reductions for
first-time-buyers or owner-occupiers.
It is calculated as follows:
Price
of Property
|
Stamp Duty Rate |
| Up
to €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% |
| Over
€80,000 |
6% |
7.
Clawback of Stamp Duty
The exemption from stamp duty for first-time house buyers
and buyers of certain new homes is currently clawed
back if the purchaser rents out the home within 5 years
of date of purchase. This clawback period is being reduced
to 2 years for all deeds of transfer executed on or
after 5 January 2007.
For deeds of transfer executed before 5 December 2007,
if that house or apartment is rented out on or after
5 December 2007, it will not involve a claw-back of
relief where this happens in the third, fourth or fifth
year of ownership.
For further information about stamp duty including exemptions
and full explanations of all rules please consult http://www.citizensinformation.ie/
and the Revenue Commissioners website www.revenue.ie
| For
Further information Contact: |
Tom Spillane & Co. Ltd. |
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