A Guide to Stamp Duty
What is Stamp Duty?
Stamp duty is a tax charged on written documents that you are required to pay when you transfer residential or non-residential property. Typically, this is paid through the solicitor handling the sale of the property.
What properties are eligible for Stamp Duty?
Both residential and non-residential properties are eligible for Stamp Duty.
- Residential Property: Houses, apartments or a site purchased with an agreement (i.e. Full planning permission) to build a residential property on it.
- Non-Residential Property: Non-residential land with no agreement to build a property on it, commercial property and business premises.
Stamp Duty Rates
For the average purchase, stamp duty is based on the property value. For purchases of 10 or more homes or duplexes, the rate increases to 10%. The table below shows the residential stamp duty rate for the average purchase (i.e. one home);
|Up to €1,000,000||1%|
|Balance over €1,000,000||2%|
A flat rate of 7.5% applies to all non-residential properties.
Exemptions & exceptions
There are a number of exemptions and exceptions to Stamp Duty, including;
- Transfers occurring between spouses, civil partners or cohabitants.
- The Local Authority Tenant Purchase Scheme: A maximum stamp duty amount of €100 applies on homes purchased under the Local Authority Tenant Purchase Scheme.
- Farmland Transfers Between Family: Consanguinity relief reduces stamp duty to 1% and is available on qualifying farmland transfers between certain family members. Several conditions apply to this relief, click here for further information.
- Farm Consolidation Relief: Farmers who buy and sell agricultural land to consolidate and improve the viability of their farms are eligible for a stamp duty rate of 1% on such transfers.
Posted on January 12, 2022
5 Tips for Preparing to Sell Your Home
Preparing to sell your home?
Here are our 5 top tips for preparing your home for sale;
- Curb Appeal: Mow the lawn, tidy up any overgrowth, sweep the driveway.
- Spring Clean: Consider hiring a professional cleaning crew to perform a deep clean of your home.
- Make a Snag List: Walk through your home and cast an eye over minor issues such as chipped paint, leaky taps and so on. Make a plan to repair these items.
- Declutter: Clean out that junk drawer and declutter your home as much as is practical.
- Stage Your Home: If the budget stretches to it, consider hiring a staging company. If not, make sure the beds are dressed in fresh linens and dot some nice touches throughout the home (throw pillows, fresh flowers etc). Depersonalise the home by removing family photos.
Local Property Tax (LPT)
What is Local Property Tax (LPT)?
Local Property Tax (LPT) is charged on residential properties in Ireland, including rental properties. If you own a residential property on November 1st, you are liable for LPT for 2022 based on the value of your property.
Who pays LPT?
If you own residential property in Ireland on November 1st, you must pay LPT. The deadline for submitting your valuation is 7th November, 2021. If you own an exempt property, you still need to make a return to claim an exemption. Note that some previously exempt properties (including those built after 2013) are liable for Local Property Tax in 2022. To check if your property is exempt, click here.
How to Value Your Property
LPT is based on the open market value of your property as of November 1, 2021. You can assess the market value of your property yourself using the following resources;
The Revenue Property Valuation Guide will give you the average values for your area. You should adjust based on specific features of your property (i.e. is it smaller or larger than the average in the area). If you believe that the average band for your area is not reflective of the value of your property, you can utilise the Residential Property Price Register or engage a professional valuer.
The Residential Property Price Register will give you the price of properties that have sold in your area. You can gather the sale prices of similar properties to your home (age, size, type) and use this to help you arrive at your valuation. Be sure to add 13.5% VAT to the sales prices shown on the register.
You are not required to use a professional valuer. However, if you have exhausted the options above and are not satisfied, you may choose to use one to value your property.
How to Pay LPT
Local Property Tax Rates
LPT is based on market value bands, with the basic LPT rates for the valuation period from 1 January 2022 to 31 December 2025 shown below.
|Valuation band number||Valuation band €||LPT charge basic rate €|
|1||0 – 200,000||90|
|2||200,001 – 262,500||225|
|3||262,501 – 350,000||315|
|4||350,001 – 437,500||405|
|5||437,501 – 525,000||495|
|6||525,001 – 612,500||585|
|7||612,501 – 700,000||675|
|8||700,001 – 787,500||765|
|9||787,501 – 875,000||855|
|10||875,001 – 962,500||945|
|11||962,501 – 1,050,000||1,035|
|12||1,050,001 – 1,137,500||1,189|
|13||1,137,501 – 1,225,000||1,408|
|14||1,225,001 – 1,312,500||1,627|
|15||1,312,501 – 1,400,000||1,846|
|16||1,400,001 – 1,487,500||2,064|
|17||1,487,501 – 1,575,000||2,283|
|18||1,575,001 – 1,662,500||2,502|
|19||1,662,501 – 1,750,000||2,721|
Each Local Authority can increase or decrease the LPT rate, known as the Local Adjustment Factor, by up to 15% from the basic rate. The Local Adjustment Factor can change every year during the valuation period. You can check out the Local Adjustment Factor Rates here to check if your LPT charge for 2022 is different from the basic rate. If you are using the Revenue Property Valuation Guide, the local adjustment rate will be factored in already in the value band for your property.
Posted on October 21, 2021
The Benefits of a New Build Home
Thinking of purchasing a new build? Here are some of the benefits of buying a new build home;
Help to Buy: First-time homebuyers can avail of the Help-to-Buy scheme with a rebate of up to €30,000.
Clean Slate: New builds are move-in ready with that new home smell. There’s no wear and tear, updates required or niggling issues, just a clean slate to put your own stamp on.
Peace of Mind: New build homes come with a 10 Year Homebond Structural Warranty.
Built for Modern Living: New build homes are designed for modern living, with an optimal layout, plenty of light and wired for technology such as home alarm systems.
Energy Efficient: New build homes come with an A-rating, meaning that they are built to the highest energy efficiency standards. This means significant savings on energy costs for the homeowner, plus a toasty, cosy home.
Low Maintenance: New builds are low maintenance with maintenance-free facades, landscaped gardens, freshly painted interiors, a new roof, new gutters and an air-tight home.
Sense of Community: New builds attract like-minded folk, and a community that will grow together. Neighbours will become friends and children will find new playmates.
Fixed Price: Buyers can rest assured that they are buying a fixed price home with no bidding war.
No Chain: Buying a new build means no complicated chain of relying on others for the sale to go through, making it a simpler and less stressful process.