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);

Property Value	Rate
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;

1. Curb Appeal: Mow the lawn, tidy up any overgrowth, sweep the driveway.
2. Spring Clean: Consider hiring a professional cleaning crew to perform a deep clean of your home.
3. 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.
4. Declutter: Clean out that junk drawer and declutter your home as much as is practical.
5. 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.

Click here to view our current listings.

Posted on November 12, 2021

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 1^st, 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 1^st, you must pay LPT. The deadline for submitting your valuation is 7^th 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;

Revenue Property Valuation Guide

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.

Residential Property Price Register

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.

Professional Valuation

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

You can pay LPT through the LPT Online System or access it through Revenue’s myAccount. You can pay LPT in full or spread the payments out over 12 months.

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

Posted on October 14, 2021