A Simple Guide to Calculating Stamp Duty for Residential and Non‑Residential Property in Ireland
Introduction
Stamp duty is a tax you must pay when you acquire a property or land in Ireland. It is payable to the Revenue Commissioners and is usually settled by your solicitor before the deed is registered. The rates were updated in the Finance Act 2024 and came into effect on 2 October 2024.
Understanding how the duty is calculated can save you surprise costs, help you budget accurately, and even highlight possible reliefs. This guide walks you through the current rates for residential and non‑residential property, shows how to work out the amount you owe, and highlights common exemptions and practical tips for buyers and investors.
1. Current Stamp Duty Rates (2025)
| Property type | Value band | Rate |
|---|---|---|
| Residential | Up to €1,000,000 | 1 % |
| €1,000,001 – €1,500,000 | 2 % | |
| Above €1,500,000 | 6 % | |
| Non‑Residential | All values | 7.5 % |
| Bulk residential purchases (10 + units in 12 months) | Any value | 15 % on the 10th (and subsequent) unit(s) |
Source: Revenue Ireland – “Stamp Duty and Property – Rates” (effective 2 Oct 2024).
1.1 Why the rates differ
- Residential rates are tiered to keep first‑time and mid‑range buyers from paying a prohibitive levy on modest homes.
- Non‑residential rates are higher because they apply to commercial premises, industrial land, offices, etc., where the tax base is broader.
- The 15 % bulk‑purchase surcharge targets speculative “flipping” of multiple houses; it replaces the previous 10 % surcharge introduced in 2021.
2. How to Calculate Residential Stamp Duty
2.1 Step‑by‑step method
- Determine the consideration – the total purchase price (or market value if a transfer of no money).
- Identify the relevant band – compare the price to the three residential thresholds.
- Apply the rate to the entire purchase price – the rate is not marginal; it applies to the full amount once the price falls in a band.
- Add any surcharge – if the transaction is the 10th (or later) unit bought within 12 months, apply 15 % instead of the standard rate.
- Adjust for new‑build VAT – if you buy a newly built house, stamp duty is calculated on the net price before VAT (currently 13.5 %).
2.2 Example calculations
| Purchase price | Rate applied | Stamp duty |
|---|---|---|
| €750,000 | 1 % | €7,500 |
| €1,200,000 | 2 % | €24,000 |
| €2,200,000 | 6 % | €132,000 |
| €350,000 (new build, VAT 13.5 %) | 1 % on €308,724 (price before VAT) | €3,087 |
| 10th unit bought for €300,000 (bulk) | 15 % | €45,000 |
Note: The 15 % surcharge applies to the entire price of the qualifying unit, not just the amount above a threshold.
3. How to Calculate Non‑Residential Stamp Duty
Non‑residential duty is simpler because there is a single rate of 7.5 % for all values.
3.1 Example calculations
| Property type | Purchase price | Stamp duty (7.5 %) |
|---|---|---|
| Office space | €500,000 | €37,500 |
| Retail shop | €1,200,000 | €90,000 |
| Industrial land | €3,000,000 | €225,000 |
If the transaction involves a mixed‑use property (part residential, part commercial), the portion classified as non‑residential is taxed at 7.5 % while the residential portion follows the residential bands.
4. Special Situations and Reliefs
| Situation | Impact on stamp duty |
|---|---|
| Transfers between spouses / civil partners | Exempt |
| Divorce or dissolution of civil partnership | Exempt |
| Local Authority Tenant Purchase Scheme | Maximum €100 duty |
| Derelict or uninhabitable house | Treated as residential (1 %‑6 % rates) |
| Land used to develop dwellings (development refund scheme) | Up to 2/3 of duty may be refunded |
| Farm Consolidation Relief | Reduced rates for qualifying farmland transactions |
| First‑time buyer relief | No separate relief – rates apply as above, but lower overall cost due to 1 % band |
| Inheritance | No duty on the portion inherited; duty only on any amount received beyond the statutory inheritance entitlement |
Sources: Revenue Ireland “Exemptions and Reliefs”, “Residential Development Stamp Duty Refund Scheme”.
4.1 How to claim a refund
If you purchase land that you later develop into residential units, you can apply for a stamp duty refund (up to two‑thirds of the duty paid) under the Residential Development Refund Scheme. Submit the claim within 12 months of the land purchase, providing a detailed development plan and evidence of completion.
5. Practical Tips for Buyers and Investors
- Use a reliable stamp‑duty calculator – most conveyancing firms and the Revenue website provide up‑to‑date calculators that automatically handle the bulk‑purchase surcharge and VAT adjustments.
- Budget for the duty early – the amount is usually payable within 30 days of the deed being lodged; failure to pay incurs interest and penalties.
- Check the land size – any area attached to a residential property over one acre is classified as non‑residential and will be taxed at 7.5 %.
- Plan bulk purchases carefully – if you intend to acquire several units, consider spreading acquisitions over more than 12 months to avoid the 15 % surcharge.
- Ask your solicitor about exemptions – many buyers are unaware that transfers between spouses or certain housing authority purchases are duty‑free.
- Consider VAT on new builds – because duty is calculated on the net price, a higher VAT component reduces the stamp‑duty amount, but you still need to pay the VAT itself.
- Keep records – retain the stamp‑duty receipt and the completed return (Form SD1) for at least six years; you may need it for tax or financing purposes.
6. Frequently Asked Questions (FAQs)
Q1. Do I pay stamp duty on a gift of property?
Yes. Gifts are treated as a transfer at market value, and stamp duty is payable by the recipient (or jointly, if there are multiple recipients).
Q2. What if the purchase price is below €1 000?
The 1 % rate still applies, so the duty would be €10 (minimum payable amount is €10).
Q3. Are there different rates for apartments?
No. Apartments are considered residential property and fall under the same bands. However, bulk‑purchase surcharge does not apply to apartments.
Q4. How is stamp duty calculated for a mixed‑use development?
Separate calculations are performed for the residential and non‑residential portions, then added together.
Q5. When is the duty due?
The duty must be paid to Revenue within 30 days of the deed being lodged for registration. Your solicitor will usually handle this on your behalf.
7. Step‑by‑Step Example: Buying a Family Home
Scenario: You are purchasing a semi‑detached house for €1,350,000. It is a second‑hand property (no VAT).
- Identify the band – €1,350,000 falls in the €1,000,001‑€1,500,000 band.
- Apply the rate – 2 % on the full €1,350,000.
- Calculate – €1,350,000 × 0.02 = €27,000 stamp duty.
- Check for exemptions – none apply (private purchase).
- Pay – solicitor submits the SD1 return and pays €27,000 to Revenue within 30 days of registration.
If the same property were the 10th house you bought in a 12‑month period, the duty would be 15 %: €1,350,000 × 0.15 = €202,500.
8. Summary Checklist
- Verify the purchase price (including any land attached).
- Determine if the property is residential or non‑residential (or mixed).
- Locate the correct rate band (1 %, 2 %, 6 % for residential; 7.5 % for non‑residential).
- Apply any bulk‑purchase surcharge (15 %).
- For new builds, subtract VAT (13.5 %) before applying the rate.
- Check for exemptions or reliefs (spouse transfer, development refund, etc.).
- Use a stamp‑duty calculator to confirm the amount.
- Ensure payment is made within 30 days of registration.
Conclusion
Stamp duty is a predictable, albeit significant, cost when buying property in Ireland. By understanding the 2025 rates—1 % up to €1 m, 2 % to €1.5 m, 6 % above €1.5 m for residential, 7.5 % for non‑residential, and the 15 % bulk‑purchase surcharge—you can accurately budget, avoid costly surprises, and even take advantage of available reliefs. Use the step‑by‑step calculations and checklist above, and always confirm the final figure with your solicitor or a reputable online calculator before proceeding with the transaction.