Stamp duty is a tax on documents, not property. Most people’s experience with stamp duty will be in relation to a property purchase which leads them to believe that stamp duty is applied to property.
But it is actually a tax on the instrument which witnesses the property transaction and you will also see stamp duty applied to other instruments (legal documents) such as shares in companies.
The Stamp Duties Consolidation act 1999 governs this whole area and in that legislation, there is a Schedule 1 which sets out the heads of charge for stamp duty which stipulates that the stamp duty on a conveyance or transfer of property will range from 0% to 9%.
Each year the government in the Finance Act may change the rate of duty in various heads of charge but the duty will be calculated on an “ad valorem” (for value) rate.
Generally, stamp duty will be payable if the document/instrument is executed in Ireland or if the transaction relates to property in the State.
You used to have 30 days within which to stamp your document/instrument with the Revenue Commissioners; this is now 44 days and your solicitor can do the stamping online with the new online stamping service provided by the Revenue Commissioners called eStamping with the purchaser being the liable person for the duty.
A much-simplified stamp duty system was introduced in Ireland in 2010 with many of the exemptions and reliefs outlined above being abolished.
The stamp duty rates in Ireland are as follows:
Up to €1,000,000-the rate is 1%
Excess over €1,000,000-the rate is 2%
There are also reliefs in relation to transfers between spouses, civil partners, and cohabitants.
Transfers Between Spouses
Transfers between spouses are exempt from stamp duty.
Non Residential Property
The rate is 2%.
Stamp Duty on Leases
Stamp duty is payable on leases and is divided between any premium payable which is calculated at normal stamp duty rates and duty payable on the rent.
Residential and Non-Residential Property
The stamp duty on the premium or fine is the normal rate for residential or non residential as appropriate.
- Lease for a term not exceeding 35 years or for any indefinite term-Rate: 1% of the average annual rent
- Lease for a term exceeding 35 years but not exceeding 100 years-Rate: 6% of the average annual rent
- Lease for a term exceeding 100 years-Rate 12% of the average annual rent