Stamp Duty
Definitions for Stamp Duty Purposes
Residential Property
A residential property is defined as a building or part of a building which is used, or is suitable for use, as a dwelling. It also includes gardens and grounds of up to one acre (0.4047 hectares) that are considered necessary for the enjoyment of the dwelling.
Common examples:
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Houses, apartments, duplexes
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Holiday homes (even if not currently used)
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Derelict dwellings (if suitable for refurbishment)
Commercial (Non-Residential) Property
A commercial property refers to any property not classified as residential, including: – Land (agricultural or development land) – Offices, shops, factories, warehouses – Mixed-use buildings (where the residential element is insignificant or secondary)
Stamp Duty is payable on the execution date of the instrument (usually the contract or deed of transfer). It is typically paid through the eStamping system via Revenue Online Service (ROS)
Current Rates (as of July 2025):
| Property Type | Consideration Amount | Stamp Duty Rate |
|---|---|---|
| Residential | First €1 million | 1% |
| Residential | €1 million – €1.5 million | 2% |
| Residential | Over €1.5 million | 6% |
| Non-Residential | All consideration | 7.5% |
- A higher 15% rate applies to purchases of 10 or more houses within 12 months.
When is it Payable
– Within 44 days of the execution date of the instrument (Section 2 of the Stamp Duties Consolidation Act 1999). – Late filing results in interest and penalties.
When a property is transferred without full market consideration, such as a gift or below-market transfer between family members, the market value is used for Stamp Duty calculation purposes.
Key Points:
– Revenue treats the market value as the “chargeable consideration”. – An independent professional valuation is typically required to support the declared market value. – Applies regardless of whether money changes hands.
Family Transfers Examples:
– Parent to child – Between siblings – Transfers under a will (note: Stamp Duty generally doesn’t apply to inheritances, which are subject to CAT instead)
Example:
If a parent transfers a house worth €400,000 to a child as a gift: – The stamp duty is calculated on €400,000, even if no payment is made. – Duty payable = 1% of €400,000 = €4,000.
Where VAT is payable on a property purchase (typically for new residential builds), a reduction in the stamp duty base is applied to avoid double taxation.
How It Works:
– Stamp Duty is not charged on the VAT-inclusive price. – It is charged on the VAT-exclusive amount.
– Purchase price: €500,000 (including 13.5% VAT) – Net of VAT: €500,000 / 1.135 = €440,528 approx. – Stamp Duty at 1%: €4,405.28
This relief is available under Section 83D of the Stamp Duties Consolidation Act 1999.
New-Build Apartments: a 9% VAT Rate
Since 8 October 2025, the sale of new apartments carries a reduced VAT rate of 9% — down from the 13.5% that applies to new houses — as a temporary measure due to run until 31 December 2030. It applies to a completed apartment for residential use in a block of at least three apartments with shared or common access.
Because Stamp Duty is charged on the VAT-exclusive price, the base for a new apartment is worked out using the 9% rate:
– Purchase price: €500,000 (including 9% VAT) – Net of VAT: €500,000 / 1.09 = €458,716 approx. – Stamp Duty at 1%: €4,587.16
Frequently asked questions
What is stamp duty and who pays it?
A government tax on property transfers, paid by the buyer, usually at completion.
What are the residential stamp duty rates?
1% on the first €1,000,000, 2% on the portion from €1,000,000 to €1,500,000, and 6% above €1,500,000. A 15% rate applies to buying 10 or more houses in 12 months.
What about commercial property?
A flat 7.5% on the full amount.
When is stamp duty due?
Within 44 days of the deed’s execution date; late filing brings interest and penalties. It’s paid through Revenue’s eStamping system (ROS).
Is it charged on the VAT-inclusive price of a new build?
No — for a new build with VAT, stamp duty is charged on the VAT-exclusive amount, to avoid double taxation.
How is it worked out on a family gift?
On the market value, not the price paid — so it applies even if no money changes hands (for example, a €400,000 gifted house = 1% = €4,000). Inheritances are subject to CAT instead.
