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Key Changes to Stamp Duty on Residential Properties

Starting from 2nd October 2024, a new 6% rate of stamp duty will apply on any balance of the purchase price over €1,500,000. Here’s a quick breakdown of the updated rates:

• For properties valued up to €1,000,000: The stamp duty remains unchanged at 1%.
• For properties valued between €1,000,000 and €1,500,000: You will continue to pay 2% stamp duty on the portion of the purchase price over €1,000,000.
• For properties over €1,500,000: Any amount over this threshold will now be subject to the new 6% stamp duty rate.

Example Scenario:

Let’s say you are purchasing a property for €2,000,000. Here’s how the new stamp duty would be calculated:

1. On the first €1,000,000, you will pay 1% (€10,000).
2. On the next €500,000, the rate is 2%, meaning you would pay an additional €10,000.
3. On the final €500,000, you’ll now be charged 6%, which amounts to €30,000.

This brings your total stamp duty bill to €50,000 under the new regulations – An extra €20,000 payable.

What If You Already Have a Contract in Place?

For those with binding contracts signed before 2nd October 2024, the existing stamp duty rates will still apply, provided the transaction is completed before 1st January 2025. This means you’ll continue to pay 1% on the first €1,000,000 and 2% on the balance, avoiding the new 6% rate entirely.

Why the Increase?

The government introduced this higher rate as part of its efforts to target high-end property transactions and generate additional revenue for housing and infrastructure development. While the increased rate may impact luxury home buyers, the unchanged rates for properties under €1,500,000 will help maintain affordability for the majority of buyers.

Final Thoughts

These changes to stamp duty are essential to keep in mind if you’re planning to buy property in Ireland. If you’re purchasing a high-value home, it’s particularly important to consider the impact of the new 6% rate on your overall costs.

At Family Cover, we’re here to help you navigate these changes and offer guidance on protecting your home and family’s future. Stay informed and make sure to check back with us for more updates!

If you have any questions or need advice on how this might affect your upcoming property purchase, feel free to contact us at Family Cover. We’re always here to help!