Dáil Éireann Debate, Thursday - 18 December 2025
242. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance the position regarding stamp duty for first time buyers with respect to both new and second hand residential properties; and if he will consider abolishing stamp duty for first time buyers. [69529/25]
Amharc ar fhreagraStamp Duty is a tax charged on documents (deeds) which transfer ownership of property. It is payable by the “accountable person”, who in respect of a sale of residential property is the purchaser. Where there is more than one accountable person, each person is jointly and severally liable to pay Stamp Duty.
Schedule 1 to the Stamp Duties Consolidation Act (SDCA) 1999 provides for Stamp Duty to be charged on transfers of residential property. The standard rates that currently apply are:
• 1 per cent on the consideration up to €1 million,
• 2 per cent on any consideration exceeding €1 million up to €1.5 million, and
• 6 per cent on any consideration exceeding €1.5 million.
Over the years, a series of Stamp Duty regimes have applied to residential property. Between 15 June 2000 and 8 December 2010, when Stamp Duty of up to 9% applied at staggered rates dependent on the value of the acquired property, first time buyers were relieved from it entirely or up to a certain value threshold. A decision was then taken to end that relief and to apply the same rate structure to both first time buyers and those acquiring their second or subsequent residential property. As a result, there is now no special treatment for first time buyers in terms of the Stamp Duty rates in effect, irrespective of whether the residential property concerned is new or second-hand.
A further simplification of the Stamp Duty system was also introduced in December 2010, and the rates applying in respect of residential property transfers were significantly reduced, from the previous rates, which as already noted were of up to 9%.
Those reduced Stamp Duty rates were 1% on the value of a residential property of up to €1 million and 2% on any value above that. Those rates continued to apply (excepting the introduction in May 2021 of a 10% Stamp Duty rate on the bulk acquisition of houses) until the additional Stamp Duty rate of 6% on value in excess of €1.5 million was introduced in Budget 2025. That Budget also saw the 10% rate increased to 15%. The higher Stamp Duty rate on bulk acquisitions is one of a number of measures introduced at that time with the intention of discouraging investment funds (and others) from buying up blocks of new houses, and sometimes whole estates, so reducing the supply of new houses available to individual buyers, including first-time buyers. Data shows that these measures appear to be having a noticeable and positive effect.
Stamp duty is reviewed as part of the annual Budget and Finance Bill process and as part of wider tax policy considerations.
