Stamp Duty and property

Transitional arrangements for residential property

Transitional arrangements for sales and leases

Budget 2025 increased the rates of Stamp Duty applying to residential property, with transitional arrangements. In such cases, the rates that applied prior to 2 October 2024 will apply. To avail of these transitional measures, the person filing the Stamp Duty Return can tick the transitional arrangements box on the return and enter the date of the contract. If that date is before 2 October 2024, the old rates will automatically apply.

Standard rates of Stamp Duty

Under the arrangements: 

• where there is a binding contract in place before 2 October 2024
• the instrument of transfer is executed before 1 January 2025
• and 
• the instrument contains a certificate*

you pay Stamp Duty at the pre-Budget rates of 

• 1% on consideration up to €1 million
• 2% on any consideration over €1 million.

*The wording of the certificate is:

"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into before 2 October 2024."

Higher rate of Stamp Duty

Under Section 31E of the Stamp Duties Consolidation Act 1999, a higher rate of duty is charged on the acquisition of certain residential property. This rate of duty applies to the acquisition of individual residential units such as houses and duplexes, but not to apartments, where a person acquires at least ten such units during any 12 month period. 

Budget 2025 has increased the rate of duty charged in such cases to 15%. However, it also provides for transitional arrangements once certain criteria have been satisfied.

Under the arrangements, Stamp Duty is charged at the pre-Budget rate of 10% on the acquisition of a tenth relevant residential unit in a 12 month period:

• where there is a binding contract in place before 2 October 2024 
• the instrument of transfer is executed before 1 January 2025
• and 
• the instrument contains a certificate.*

*The wording of the certificate is:

"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into before 2 October 2024."

In such cases, the rate that applied prior to 2 October 2024 will apply.

Acquisition of a tenth property on, or after, 2 October 2024

Where a person acquired a number of residential units prior to 2 October 2024, but the tenth property is not acquired until on, or after, 2 October 2024, the 15% rate will be charged on that acquisition and on the previous acquisitions in the 12 month period, unless the transitional arrangement applies.

The transitional arrangement will apply if the acquisition of the tenth property:

• takes place pursuant to a binding contract entered into before 2 October 2024
• and
• the acquisition is completed by 31 December 2024.

In such a case, the 10% rate will apply to that acquisition and on the previous acquisitions in the 12 month rolling period.