How to calculate stamp duty on a new house

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Stamp duty on residential property in Ireland is 1% of the purchase price of the property. If there is no purchase price-for example a gift-stamp duty is calculated on the market value of the property.

For example, if you buy a secondhand house for €250,000 your stamp duty will be 1%-that is, €2,500.

New Houses

Calculation of stamp duty on your new house will be slightly different. It is likely that the price of your new house will include vat at 13.5%. As you are not expected to pay stamp duty on top of vat you must calculate the vat exclusive price of the house, and then calculate the stamp duty.

Let’s say you are buying a new house for €400,000 and this price includes vat. The vat exclusive price will be €400,000/113.5×100-that is, €352,422.90.

Therefore, you pay stamp duty of 1% of €352,422.90-that is €3,522, and not €4,000 (1% of €400,000).

Remember, divide the purchase price of the new house by 113.5 and multiply by 100. This gives you the vat exclusive price of the house. This is the value on which you pay stamp duty.

This is on the basis that the purchase price of the new house includes vat; if it does not then you do not carry out this calculation and will pay stamp duty at 1%.