Stamp duty in Ireland: the complete guide

Stamp duty is the tax you pay to the Revenue Commissioners when you buy a property in Ireland. It’s one of the larger “hidden” costs of buying, and because it’s charged as a percentage of the purchase price, it scales with the value of the home. This guide explains the current residential rates, who pays, when it falls due, and how to budget for it — with worked examples.

What is stamp duty?

Stamp duty (sometimes called “stamp duty land tax” informally) is a once-off transaction tax on the transfer of property ownership. It applies whether you’re buying a second-hand home, a new build, or a site. It is separate from your mortgage, your deposit, and your solicitor’s fees — a genuinely additional cost you need cash for at closing.

Residential stamp duty rates

For residential property, Ireland uses a tiered structure. The headline rates that apply to most homebuyers are:

• 1% on the portion of the price up to €1 million
• 2% on the portion of the price between €1 million and €1.5 million
• 6% on any portion above €1.5 million

A separate, much higher rate (currently 15%) applies to the bulk purchase of ten or more residential houses in a twelve-month period — a measure aimed at investment funds, not ordinary buyers. Non-residential property (commercial premises, bare sites without a residential element) is taxed at a different flat rate again.

Worked examples

Because the structure is tiered, you only pay the higher rate on the part of the price above each threshold — not on the whole amount.

• A €350,000 home: 1% of €350,000 = €3,500.
• A €600,000 home: 1% of €600,000 = €6,000.
• A €1,200,000 home: 1% of the first €1,000,000 (€10,000) plus 2% of the next €200,000 (€4,000) = €14,000.

Who pays, and when?

The buyer pays stamp duty — the seller does not. It’s handled by your solicitor as part of closing: your solicitor files the return and pays Revenue, usually within 44 days of the deed of transfer (the date you complete the purchase). In practice you’ll transfer the money to your solicitor along with the balance of the purchase price, so you need it ready in cash at closing.

New builds and VAT

For new homes, stamp duty is charged on the price excluding VAT. This matters: a new build advertised at a VAT-inclusive price is assessed for stamp duty on the lower, VAT-exclusive figure, so the duty is slightly less than a back-of-envelope calculation on the sticker price would suggest.

Is there relief for first-time buyers?

There is no special reduced stamp-duty rate just for being a first-time buyer — the 1% rate applies to everyone buying a typical home. However, first-time buyers can benefit from separate supports such as the Help to Buy incentive and the First Home Scheme, which we cover in our first-time buyer guide. Don’t confuse those schemes with stamp duty: they help with your deposit, not your stamp-duty bill.

How to budget for it

Treat stamp duty as part of your total “cost to complete”, alongside your deposit, solicitor’s fees, valuation and survey fees, and moving costs. For most buyers under €1 million, budgeting 1% of the purchase price for stamp duty is a safe rule of thumb. Knowing your likely purchase price early — even a realistic range — makes this much easier to plan.