When do I have to pay stamp duty?
All residential and commercial property buyers will normally have to pay stamp duty. The stamp duty itself is a tax on the value of the property you are buying. Since December 2010, all stamp duty exemptions have been abolished making the stamp duty system very easy to use, and the amount of stamp duty owed calculated.
If you are in the process of buying a property and began your procedure before December 8 2010, your solicitor will explain that you may have transitional provision to ensure you don’t pay too much stamp duty.
The rate of stamp duty is currently:
- Up to €1 million – 1%
- Over €1 million – 1% on the first €1 million and 2% on the rest of the value
Your conveyancing solicitor will be able to answer any questions you may have about the amount of stamp duty you have to pay.
The normal process of buying property in Ireland concludes with contracts being signed and exchanged with that is called a Deed of Conveyance.
Once the Deed of Conveyance is with your property solicitor, your mortgage lender will release their cheque, which will be the balance of the money you owe minus what you have already paid to the estate agent as a booking fee.
The conveyancing solicitor you are using will also calculate the amount of stamp duty due on the property you are buying. Once this figure is known, you will be asked to make this payment. You must promptly pay any stamp duty you owe, as your solicitor will need an official stamp from the Revenue Commissioners on your contracts of sale to show the stamp duty has been paid in full.
This official stamp is necessary, as the last task your solicitor will perform is to register your property with the Registry of Deeds or the Land Registry. Without the Revenue Commissioners stamp, this can’t be done, and your sale would not be legally binding.
Contact Law is an established legal brokerage company, helping you find the right conveyancing solicitors in Ireland. Whatever your legal needs, call us on 1800 937 974 or fill in the web-form above and let our dedicated case handlers match you to the best solicitor for your needs.
- Last Updated on 05/03/2012