Buying a new build in Ireland
A new build purchase has its own legal structure and its own sequence, and two things in it catch buyers out.
The short answer. You sign two contracts, not one — a contract for sale for the site and a building agreement for the house. Stamp duty is charged on the site cost plus the build cost, exclusive of VAT. When the house is finished, a completion notice starts a short deadline to close, with interest running if you miss it.
Why there are two contracts
On a second-hand house the seller owns a finished home and signs one contract to transfer it. A developer is selling you something that does not exist yet, so the deal splits in two:
- The contract for sale — the site: title, boundaries, rights of way, services.
- The building agreement — the house: the builder’s commitment to construct it to the agreed drawings and specification.
The price is apportioned between them and you sign both together. Neither alone buys you a finished home.
This matters three ways. It sets how your stamp duty is calculated. It decides what you can hold the builder to if the house is not built as promised — that is the building agreement, not the contract for sale. And it makes the attached specification a legal document rather than a brochure: if a finish matters to you, it belongs in there before you sign.
Most new homes also carry a structural guarantee: see our explanation of HomeBond.
Stamp duty on a new build
Buyers often assume duty falls on the site contract only. It does not.
Where you buy a site with a connected agreement to build a house on it, Revenue treats the site as residential property, and duty is charged on the site cost plus the build cost, exclusive of VAT. Stamp duty is not charged on VAT, so you strip it out first.
The VAT rate is not the same for houses and apartments. A new house carries VAT at 13.5%. Since 8 October 2025, the supply of a qualifying apartment carries VAT at the second reduced rate of 9% — a change made by Finance Act 2025 and running to 31 December 2030. Not every apartment qualifies: the term is defined in the legislation, so the rate is worth confirming before relying on a figure.
House at €400,000 including VAT at 13.5% — Revenue’s own worked example:
- €400,000 ÷ 1.135 = €352,422.90 VAT-exclusive
- 1% of that = €3,524.23
Qualifying apartment at €400,000 including VAT at 9%:
- €400,000 ÷ 1.09 = €366,972.48 VAT-exclusive
- 1% of that = €3,669.72
Duty on the headline €400,000 would have been €4,000 in both cases. The lower the VAT rate, the more of the price is left in the stamp duty base — so the apartment attracts slightly more duty, not less.
| Consideration (VAT-exclusive) | Rate |
|---|---|
| Up to €1 million | 1% |
| Over €1 million and up to €1.5 million | 2% |
| Over €1.5 million | 6% |
Help to Buy is the lesser of €30,000, 10% of the purchase value, or the income tax and DIRT you paid over the previous four years. It is paid to the contractor, not to you, and the enhanced relief runs to 31 December 2029. The First Home Scheme can sit alongside it at a reduced maximum.
The completion notice
When the house is finished, the builder’s solicitor serves a completion notice: the property is ready and the balance is due.
That starts a deadline. Its length comes from your building agreement rather than from statute, and it is short — weeks, not months. Miss it and the agreement will usually allow interest on the outstanding balance.
It is not designed to accommodate a buyer still organising things. By the time it arrives, you need:
- Formal loan offer accepted and the lender’s conditions met
- Mortgage protection and buildings insurance in place
- Help to Buy claim completed and the deposit code given to the contractor
- First Home Scheme or Local Authority Affordable Purchase paperwork finalised, if either applies
- Your own funds already with your solicitor
- Snag inspection done and the list with the builder
Which is the argument for instructing a solicitor at booking deposit stage. A file already open closes inside the notice period. A file opened the week the notice lands generally does not.
Certificate of Compliance on Completion
Before a new house may be opened, occupied or used, a statutory Certificate of Compliance on Completion must be lodged with the building control authority and entered on the statutory register, signed by the Assigned Certifier and the builder.
Your solicitor checks it is validly in place. It is what makes the house lawfully occupiable — and what a future buyer’s solicitor will ask you for when you sell.
Snagging
A snag list records defects and unfinished items. What it usually does not do is entitle you to refuse to close: building agreements normally treat snags as items the builder undertakes to remedy, and retentions from the price are rarely on offer here.
So your leverage is highest before closing and drops sharply after. Book the inspection as early as the builder allows, use a professional, and get the list to the builder in writing well before the completion notice — not on the day.
That is a different exercise from a pre-purchase survey, which is aimed at a different kind of property.
New build compared with second-hand
| New build | Second-hand | |
|---|---|---|
| Contracts | Contract for sale and building agreement | One contract for sale |
| What exists at signing | A site and a specification | A finished house |
| Stamp duty base | Site + build cost, VAT-exclusive | Purchase price |
| VAT | 13.5% on houses, 9% on qualifying apartments | None (second-hand generally exempt) |
| Closing date | Set by completion notice | Agreed between the parties |
| Condition | Snag list, builder remedies | Survey, price renegotiation |
| Structural cover | Guarantee such as HomeBond | None, beyond your survey |
What to do now
Instruct a solicitor at booking deposit stage
The booking deposit is refundable and commits you to nothing — but it is when your solicitor can start reading title.
Get the specification checked before signing
The drawings and specification are what the builder must legally deliver. Anything promised verbally needs to be in there.
Finish your funding
Loan offer, mortgage protection, insurance, Help to Buy or First Home Scheme paperwork — all done, not in progress.
Book the snag inspection early
Use a professional and put the list in writing. Your leverage is before closing, not after.
Be ready for the completion notice
The clock is short and set by your contract. Funds should already be with your solicitor.
How we work on new builds
Our new build property purchase guide sets out the process step by step, with a full costs breakdown. The property purchase page explains how we work, with a fixed-fee quote in writing before you commit.
→ Get a fixed-fee quote for your new build purchase
Sources
- Revenue — Stamp Duty: residential property
- Revenue — Stamp Duty rates
- Revenue — VAT-exclusive consideration
- Revenue — VAT on qualifying apartments
- Revenue — Second reduced rate of VAT
- Revenue — Help to Buy: how much can you claim
- Citizens Information — Help to Buy Scheme
- First Home Scheme — official site
- Citizens Information — Local Authority Affordable Purchase Scheme
- Department of Housing, Local Government and Heritage — Building Control
- Citizens Information — Steps involved in buying a home
General information about buying a new build in Ireland, not legal or tax advice. Contract terms vary between developers — your own building agreement governs. Please take advice on your own circumstances.
Frequently asked questions
Why do you sign two contracts when buying a new build in Ireland?
Because you are buying two things: a site, and a promise to build a house on it. The contract for sale transfers the site; the building agreement commits the builder to construct the house to the agreed specification.
Is stamp duty charged on the site only, or on the full price of a new build?
On both. Where a site is bought with a connected agreement to build, Revenue treats it as residential property and stamp duty is charged on the site cost plus the building cost, exclusive of VAT.
How do you work out stamp duty on a new build?
Strip out the VAT, then apply the residential rate. A house carries VAT at 13.5%: €400,000 ÷ 1.135 = €352,422.90, so 1% is €3,524.23. A qualifying apartment carries VAT at 9% since 8 October 2025: €400,000 ÷ 1.09 = €366,972.48, so 1% is €3,669.72.
What is a completion notice on a new build?
The notice served when the house is finished and ready to hand over. It starts a short deadline, set by your building agreement, in which you must close. Miss it and interest usually runs on the balance.
Can you refuse to close on a new build because of snags?
Usually not. Snags are normally items the builder undertakes to remedy, not grounds to delay completion. Your leverage is greatest before you close, so book the snag inspection early.
What is a Certificate of Compliance on Completion?
A statutory certificate signed by the Assigned Certifier and the builder. It must be lodged with the building control authority and appear on the statutory register before the building may be opened, occupied or used.
When should you instruct a solicitor on a new build purchase?
At booking deposit stage. Contracts arrive with a signing deadline, and the completion notice later gives you a short window. Both are easier if your solicitor already has the file open.
