Stamp duty rate of 7% for houses under €1m
The Minister for Finance has announced that houses with a value of less than €1m will be subject to stamp duty of 7 %, with no tax payable on the first 125,000.
Houses valued in excess of €1m will pay at a higher rate of 9% on the portion of the price, which is in excess of that figure.
Minister Cowen predicted this regime would also provide for a progressive stamp duty system, whereby those buying the more expensive houses would always pay a higher effective rate than those buying the average house.
The Irish Home Builder’s Association (IHBA) has welcomed stamp duty reform.
According to Hubert Fitzpatrick, IHBA Director, stated: "Reform of stamp duty should, given the very good value currently in the market, help improve confidence and contribute to increased transactions. The housing market had stalled and in such a market few people were willing to pay the penal rate of stamp duty when moving home."
