First Time Buyers - Stamp Duty
Reduced
rates of stamp duty apply to first time buyers. First time buyers
buying new houses are fully exempt from stamp duty provided the
structure has a floor area certificate issued by the Department
for the Environment. The floor area of the property must not exceed
125 square meters (1,346 sq ft). The house must be for the purchasers
own occupation for a period of five years commencing on the date
of purchase.
Where the property is greater than 125 sq mtrs and the property
is new, first time buyers can also avail of a reduction in the amount
of stamp duty payable.
Stamp Duty is assessed on the greater of
a) Site price or
b) 25% of the total of the site costs and building costs (exclusive
of VAT) at the appropriate reduced rate of stamp duty for a first
time purchaser.
A first time buyer of a new home measuring say 150 sq mtrs costing
€100,000 including VAT (site cost €50,000). The purchase price chargeable
to stamp duty is 25% of the actual purchase price (€200,000 (minus
VAT @12.5%) multiplied by 25%). Therefore the stamp duty payable
on this home is €23,750 x 0%=nil. No stamp duty arises as stamp
duty charges only commence at €190,001 for first time buyers.
See Stamp Duty Rates for rates applicable
to new houses and apartments greater than 125 sq mtrs taking into
account the restricted consideration. At the rates from the 06/12/01
investors who purchase a new property will pay the same rate of
stamp duty on that property as they would on a second hand home
and these rates are laid out in the stamp duty section.
Where contracts are entered into prior to 6th December, 2001 a flat
rate of 9% will apply to investor properties.
See Also:
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