Property Investors - Tax on Rental Income >> Stamp Duty

Tags: Landlords, Property Investors, VAT

General
Stamp Duty is a very significant transaction based tax and is payable by the purchaser on the cost of an investment property. 
Residential Property
For new property stamp duty is chargeable on the net of VAT cost. This matter should always be checked by your solicitor to ensure that the correct rate of Stamp Duty is applied to the chargeable element of the consideration.
Generally speaking second hand property will not involve VAT and Stamp Duty will be payable on the purchase price for the property.
A radical change was made with effect from the 8th December 2010. A rate of 1% was introduced for the first €1m of consideration for residential properties and a rate of 2% applies to any consideration over €1m.
In addition with effect from the 8th December 2010 all the following stamp duty reliefs were abolished –

  • First time Buyer Relief
  • New houses Exemption/ reduction on large houses
  • Family transfer relief
  • Exemption on residential properties value up to €127,000
  • Transfer of sites to children relief

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Property Investors - Tax on Rental Income