Important Note on Planning as Part of Your Refinancing
Stamp Duty
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:
- Houses, apartments, duplexes
- Holiday homes (even if not currently used)
- Derelict dwellings (if suitable for refurbishment)
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)
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.
– 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.
– 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.
– Parent to child
– Between siblings
– Transfers under a will (note: Stamp Duty generally doesn’t apply to inheritances, which are subject to CAT instead)
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.
– 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.
Jacob Law LLP, December 2025
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