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Stamp Duty Explained

  • Writer: Daft.ie Insights
    Daft.ie Insights
  • Dec 18, 2015
  • 2 min read

Updated: Sep 1, 2021

Stamp Duty is the tax levied by the Government for changing the documents that specify who owns a particular property irrespective of whether it’s a new build or second-hand property.  It’s thought to have originated in Spain and goes back to the days when a physical stamp (a revenue stamp) had to be attached to a document to show that duty had been paid.


How much is Stamp Duty?

The amount is based on the type and cost of the property and whether it is a residential or non-residential property.


For residential property, it is calculated at 1% of the selling price of any property up to €1m. For amounts above €1m you will be charged 2%.


For example:

If you buy a home that is worth €300,000, you will pay stamp duty of €3,000.

It is worth noting that stamp duty is not part of your mortgage and needs to be saved separately to what you have for your deposit.


Buying a New Build?

VAT is charged on new build homes but not on second-hand homes.


If you are buying a new build, then you will only pay Stamp Duty on the base price. Not the price including VAT.


For example:

If you paid €227,000 (including VAT) for your new house, this is made up of the base price of €200,000 plus 13.5% VAT (€27,000).


In this case you only pay stamp duty on the base price of €200,000, so your Stamp Duty will be €2,000.


Who do I pay my Stamp Duty to?

When closing a sale your solicitor will calculate the stamp duty you owe to the Revenue Commissioners.


Non-residential property?

A single rate of 2% applies to all non-residential property.


Buying a site?

If you buy a site with an arrangement to build a house on it, then stamp duty will be charged at the residential rate on the total of the site and the building cost.

If you buy a site with no connected arrangement to build a house or apartment on it, then stamp duty will be charged on the site cost at the non-residential property rate.

For more information check out the Revenue Commissioners page on Stamp Duty.

 
 
 

35 Comments


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4 days ago

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robert50powell.9.5.8.4+abc123
4 days ago

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wen yong
wen yong
Jun 25

This breakdown of stamp duty thresholds and exemptions is super helpful—especially the clarification on how first-time buyer relief applies to different property values. I’d been stressing over whether my budget could stretch to cover both deposit and tax, so seeing the numbers laid out this clearly made a real difference. While researching home-buying logistics, I also stumbled on an unexpectedly useful resource for a totally different kind of challenge: escape the backrooms. Their level maps and entity guides are impressively detailed—definitely saved me hours of trial-and-error in that game. If you're juggling real-world admin *and* virtual survival, it’s oddly satisfying to find equally thorough guides for both. https://escapethebackrooms.org/

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wen yong
wen yong
Jun 24

The article breaks down stamp duty thresholds clearly—especially how the 1% rate applies to first-time buyers up to €225,000—but doesn’t cover how property type or location nuances (like shared ownership or rural vs. urban) might shift liability. I found myself cross-referencing official Revenue docs just to confirm eligibility rules. That’s where Escape the Backrooms stood out for me earlier: not as a tax resource, of course, but as a model of how layered, multi-step systems (like navigating its 30+ levels) are made digestible with consistent maps, codes, and entity guides. If complex processes need clarity, that kind of structured walkthrough approach is rare—and valuable. Escape the Backrooms does it well.

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wen yong
wen yong
Jun 23

Who knew this stamp duty stuff could be so complicated? Just remember, it ain't included in , or you'll get blindsided.LumenTale


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