It’s one of life’s certainties: tax. If you’re planning on buying or selling a property in Ireland, you’ll need to understand the tax you’ll pay. Make sure you’re clear on all the rules, so you don’t fall foul of the law.
This guide will get you started in your research into Irish property taxes. We’ll also cover smart ways to manage your money in Euro, such as low cost solutions from TransferWise. More on that later.
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This is because a lot of banks add a mark-up to the exchange rate that they offer to you, so you ultimately lose out. TransferWise doesn’t do this. They’ll always give you the real exchange rate - that’s the rate that you see on Google.
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Now, back to what you came to read.
Property tax in Ireland includes various fees paid to the Irish Tax and Customs Revenue Agency¹ on residential and non-residential property, as well as land². You may need to pay property taxes even if you’re a non-resident in Ireland, depending on the type and condition of the property you own³.
There are various types of tax you need to know about if you’re considering buying or selling a home in Ireland. The key costs are as follows:
When buying property: Stamp duty²
As a property owner in Ireland: Local property tax⁴
When selling property: Capital gains tax⁵
As tax is a complex subject, you’re advised to get professional guidance to help you navigate the processes involved - and make sure you pay the correct amount.
Stamp duty is a tax paid on certain written documents that transfer ownership of a property, or are agreements to transfer ownership of property. You can also pay Stamp Duty on certain leases and agreements to lease, and in some some non-property related cases⁶.
There are exceptions to the rules which mean stamp duty won’t be paid if a home is, for example is inherited under a will or on intestacy⁸ - but in simple home purchase situations, you can expect to need to pay.
Some stamp duty is levied at residential and non-residential rates, and calculated based on the purchase price you pay. For residential properties, you pay 1% of the value for properties worth up to EUR1,000,000. If your property is more expensive, you’ll pay this, plus 2% of the value in excess of 1 million euros. Non-residential properties or land pay a 6% stamp duty, although there are some exceptions and refunds available¹⁰.
Capital gains tax is paid when you gain from the sale, gift or exchange of an asset. These assets can include, land, and residential and non-residential buildings.¹¹
Capital gains tax is set at 33% of the taxable amount, but this can change - so always check directly with xxx.
To calculate the taxable amount you take the value of the property, and deduct:
- The price you paid to purchase the asset.
- Money you’ve invested in it, that has added to the value of the asset.
- Costs associated with the purchase and sale.¹²
This is just a basic outline of the process, and there may be other factors, or exemptions to consider. Take professional advice to ensure you’re calculating the payment amounts correctly.
Once you own a residential property in Ireland, you’ll need to pay an annual tax called local property tax, which is based on the value of your home.¹³
You’ll pay local property tax on your own residence in Ireland. You can also be liable for types of property, for example if you rent a property out for a lease lasting more than 20 years.¹⁴
The Revenue have created a calculator to help you work out the amount of Local Property Tax due on your property for any period. You just need to enter your taxable period, the relevant local authority, and the property value band - then the calculator will tell you the local property tax charge.¹⁵ Take advice if you’re not sure whether you need to pay.
For up to date information about the taxes you need to pay, deductions and exemptions available, check out the Irish Tax and Customs website, which has full details, forms and advice.
You’ll need to pay stamp duty within 30 days of the property transferring to your name, or face a penalty.¹⁷ For key dates for Local Property Tax see Revenue’s What are the key dates for LPT?. For capital gains tax, if you dispose of your property between January 1 and November 30, the tax must be paid by December 15 of that year.¹⁹ For full details see the Revenue’s When do you have to pay CGT?.
The way you pay your tax will depend on which tax you need to pay. Local property tax, for example, can be paid by a direct debit transfer. Alternatively, you can choose to pay a single payment in full via a debit or credit card.²⁰ For full details online, visit the Revenue agency.
You can make a payment online for Capital Gains tax via your ROS (Revenue Online Service) or myAccount. You can pay for Local Property Tax in a number of ways, including via a MasterCard credit or debit card, or VISA credit or debit card, to pay a payment in full, via your online LPT account.²¹ Paying Stamp Duty is a little more complicated, so for full details see the Revenue’s How do you pay Stamp Duty?*.²² *
Tax is a notoriously complex subject. But it’s also not one that’ll go away. Do your research and take professional advice to make sure you know about all your obligations, and how to make your property tax payments in Ireland. Making incorrect filings, or paying late could result in needing to pay a fine later.
Don’t forget to check out how TransferWise can help you save on international payments for Euro. There’s no reason to pay more than you should - combine convenience, competitive pricing and speed and start saving today!
1.Irish Tax and Customs Revenue Agency
2.Revenue Agency: Irish Property; Taxes to Pay
3.Revenue Agency: Non-Residents
4.Revenue Agency: Local Property Tax
5.Revenue Agency: Capital Gains Tax
6.Revenue Agency:Stamp Duty
7.Revenue Agency: Agreement for or assignment of a lease, Stamp Duty
8.Revenue Agency:Do you pay Stamp Duty on property you inherit?
9.Revenue Agency: Stamp Duty Current Rates
10.Revenue Agency:Stamp Duty on residential and non-residential land and buildings
11.Revenue Agency: What do you pay CGT on?
12.Revenue Agency: How to calculate Capital Gains Tax (CGT)
13.Revenue Agency: Who is liable for Local Property Tax?
14.Citizens Advice Bureau:Irish Local Property Tax Reliefs
15.Revenue Agency: Calculator
16.Revenue Agency: Local Property Tax Exemptions
17.Revenue Agency:When do you pay Stamp Duty?
18.Revenue Agency: What are the key dates for LPT?
19.Revenue Agency: When do you have to pay CGT?-
20.Revenue Agency: How to pay Local Property Tax
21.Revenue Agency: Can you pay your LPT by credit or debit card?
22. Revenue Agency: How do you pay Stamp Duty?
23.Revenue Agency: Contact
Sources checked on 20-September 2019.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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