Stamp Duty

Tax Info / Tax Summary / Stamp Duty

Stamp Duty is a duty charged on certain written documents (known as “instruments”). Not every instrument is liable to stamp duty. To be liable an instrument must be listed in Schedule 1 to the Stamp Duties Consolidation Act 1999. It must also be executed in Ireland or, if executed outside Ireland, it must relate to property situated within Ireland or something done or to be done in Ireland. Some instruments may benefit from an exemption or relief.

The various categories of instruments within the charge to stamp duty are listed in alphabetical order (each category being known as a “Head of Charge”) in Schedule 1 to the Stamp Duties Consolidation Act 1999. The rate of duty applicable, which may be ad valorem or fixed, under each Head of Charge is also set out in Schedule 1.

Stamp duty is a self-assessment tax payable by the “accountable person” (e.g. the purchaser or transferee in the case of a transfer of property, the lessee in the case of a lease).

Where an instrument is liable to stamp duty, a stamp duty return must be filed on-line with Revenue via the e-stamping system. The e-stamping system allows filers to use ROS (Revenue On-Line Service) to file returns and pay duty on-line. The full amount of stamp duty due must be paid within 30 days of the date of execution of the instrument. In practice Revenue allow a further period of 14 days in which to file an e-stamping return and pay the duty. Failure to file and pay within 44 days will result in late filing and interest charges.

Stamp Duty Rates

1. Conveyances/Transfers of Residential Property

The rates of duty applicable to instruments executed on or after 8 December 2010 are

The rates of duty applicable to instruments executed on or after 8 December 2010
Aggregate Consideration Rate of Duty
First €1,000,000 1%
Excess over €1,000,000 2%

2. Conveyances/Transfers of Non-Residential Property

The rate of stamp duty applicable to instruments executed on or after 7 December 2011 is 2%

3. Leases

A lease is chargeable to stamp duty on both the premium (or fine) and the rent payable under the lease.

The rate chargeable on the premium mirrors the rate for conveyances/transfers of residential, non-residential or mixed property, as appropriate.

The rate chargeable on the rent is set out below:

The rate chargeable on the rent
Residential and Non-Residential Property Rate
Lease for a term not exceeding 35 years or for any indefinite term 1% of the average annual rent
Lease for a term exceeding 35 years but not exceeding 100 years 6% of the average annual rent
Lease for a term exceeding 100 years 12% of the average annual rent

A lease of a house or apartment for a term not exceeding 35 years or for any indefinite term and where the rent does not exceed €30,000 per annum is exempt from stamp duty.

Where the rent is less than market value stamp duty is chargeable on the rent plus a notional premium because the lease is deemed to operate as a voluntary disposition inter vivos (i.e. gift). The notional premium is the minimum amount or value that would be necessary in order that the lease, taking into account the rent payable, would no longer operate as a voluntary disposition inter vivos.

An assignment of a lease is chargeable as a conveyance/transfer.

4. Counterparts

Each counterpart (or duplicate) of an original instrument chargeable with duty is liable to a fixed duty of €12.50. Where the duty chargeable on the original instrument is less than €12.50 the duty on the counterpart is the same amount as the duty chargeable on the original.

Relief on leasing of certain lands

Relief from stamp duties is being provided in relation to a lease of land for a term not less than 5 years and not exceeding 35 years where the land is used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. The lessee must, from the date on which the lease is executed, farm the land for not less than 50 per cent of his or her normal working time. The relief will be recoverable by assessment if any of the conditions governing the relief (other than as a result of the death or permanent incapacity of the lessee) cease to be complied with within the first 5 years of the lease.

Non Residential Property (From 7th Dec 2011)

All forms of property (other than stocks and shares and residential property) such as land, buildings, goodwill, book debts, cash on deposit and benefits of contracts, attract stamp duty at the rates set out below.

Consideration Rate of Duty
All Amounts 2%

Residential Property (From 8th Dec 2010)

A new lower rate of 1% will apply to instruments where the consideration attributable to residential property does not exceed €1,000,000. A higher rate of 2% will apply to the excess of the consideration over €1,000,000. In conjunction with the introduction of the lower rate of 1%, which will apply to the entire amount of the consideration up to €1,000,000.

Consideration Rate of Duty
First €1,000,000 1%
Excess over €1,000,000 2%

Leases

A lease is chargeable to stamp duty on both the premium (or fine) and the rent payable under the lease.The duty chargeable on the premium is at the rate for residential or non-residential property as appropriate.

Residential and Non-Residential Property Rate %
Lease for a term not exceeding 35 years or for any indefinite term 1% of the average annual rent
Lease for a term exceeding 35 years but not exceeding 100 years 6% of the average annual rent
Lease for a term exceeding 100 years 12% of the average annual rent

A lease of a house or apartment for a term not exceeding 35 years or for any indefinite term and where the rent does not exceed €30,000 per annum is exempt from stamp duty.

Other Rate %
Bills of Exchange (Incl Cheques) €0.50
Shares 1%
Non-Life Insurance Levy (of gross premiums) 3%
Credit Card & Charge Cards €30.00 p.a.
ATM Cards €2.50 p.a.
Laser Cards €2.50 p.a.
Combined ATM/Laser Cards €5.00 p.a.

Consanguinity Relief

Consanguinity relief, which applies to transfers of non-residential property to certain relatives, is due to expire on 31 December 2014. This relief, which halves the applicable rate of Stamp Duty, will be extended for a period of three years in certain circumstances where the transferor is 65 years or under and the transferee is an active farmer.

Stamp Duty on Agricultural Leases

Agricultural leases between 5 and 35 years in duration to active farmers will be exempt from Stamp Duty.

Enterprise Securities Market (ESM) Companies

An exemption from stamp duty is being introduced in respect of the transfer of shares in companies which are listed on the Enterprise Securities Market of the Irish Stock Exchange.

Young Trained Farmers

The eligibility requirements for the stamp duty relief for Young Trained Farmers for the purchase of agricultural properties is being extended by adding three more qualifying courses to the list of relevant qualifications required to obtain the relief.

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