Buying a property in The Republic Of Ireland.

If you buy a property in Ireland there are certain taxes that you will have to pay. In this section you will find information about these taxes and the reliefs that may be available to you.

You should inform Revenue when you move to a new home so that all correspondence can be sent to your new address.

What taxes do you need to pay?

Stamp Duty

When you buy Irish property, you may execute (sign, seal or both) an instrument (written document). The instrument transfers ownership of the property to you. You must:

file a Stamp Duty return on this instrument
pay Stamp Duty on this instrument.

Irish property includes:

land
buildings – residential (houses or apartments) and non-residential (office buildings, manufacturing plants)
business assets (such as goodwill)
shares in Irish companies.

You can find detailed information in the Stamp Duty section.

Some instruments are exempt from Stamp Duty or benefit from a relief.

You can read about the exemptions and reliefs in:

Part 7 and Schedule 1 of the Stamp Duty Tax and Duties Manual
Part 7 and Appendix 2 of the Stamp Duty Notes for Guidance.

Local Property Tax (LPT)

The amount of LPT you will have to pay depends on the market value of your property. The market value is the best price that you could sell your property for on the open market.

Before you buy a property, you must ensure you obtain the LPT property identification (ID) number and the valuation from the seller. You must also check that all LPT returns and payments have been filed and are up to date.

See the Local Property Tax (LPT) section for more information.

What reliefs are available?

Help to Buy (HTB) Incentive

If you are a first-time buyer, this incentive will help you towards the deposit you need to buy or build a new home.

The incentive gives you a refund of the income tax and Deposit Interest Retention Tax (DIRT) you paid over the previous four tax years.

The incentive applies if you buy or self build a new residential property as your main home between 19 July 2016 and 31 December 2019.

See the Help to Buy (HTB) incentive section for more information.

First-Time Buyers (FTB) Relief

You pay DIRT on interest you receive on your savings in financial institutions such as banks and building societies.

If you are a first-time buyer that buys or self builds a property to live in, you may be able to claim a DIRT refund.

The FTB is relief applied to homes bought or self-built between 14 October 2014 and 31 December 2017.

See the First Time Buyers’ (FTB) relief section for more information.

Mortgage Interest Relief

Mortgage Interest Relief is tax relief on the interest you pay on a qualifying mortgage on your home.

A qualifying mortgage is a secured loan used to purchase, repair, develop or improve your sole or main residence. Your sole or main residence is the property that is your home for the majority of the year.

Mortgage Interest Relief is given by your mortgage provider by reducing the amount of your mortgage repayment by the amount of the tax relief due. The relief only applies to mortgages taken out before 31 December 2012.

See the Mortgage Interest relief section for more information.

Home improvement loans

You can claim tax relief on the interest paid on a loan used to purchase, repair, develop or improve your main residence. Your main (or sole) residence is the property that is your home for the majority of the year.

The relief only applies to loans that were approved, and at least partly used, before 31 December 2012. Relief is not available on loans used to buy furniture or removable fittings such as curtains and carpets.

Home Renovation Incentive (HRI)

HRI is a tax relief for homeowners and landlords. Relief can be claimed as a tax credit on the cost of repairs, renovations and improvement work done on your main home or rental property.

If you are a homeowner, the work must be done between 25 October 2013 and 31 December 2018. If you are a landlord, the work must be done between 15 October 2014 and 31 December 2018. The work must be completed by a contractor that is tax compliant and Value-Added Tax (VAT) registered.

See the Home Renovation Incentive (HRI) section for more information.

 

Source : Revenue.ie