The rate of stamp duty applicable to new homes is dependent upon the floor area size of the house/apartment in question and is outlined below:

(a) Houses/Apartments less than 125 sq. metres

For persons buying new homes/apartments, there is a full exemption from stamp duty for first-time buyers and owner-occupiers (but not investors) provided the structure has a floor area certificate issued by the Department of the Environment. The house or apartment must not have been occupied prior to purchase and the floor area must not exceed 125 sq. metres (1,346 sq. feet). In order to avoid a clawback, the purchaser must occupy the house or apartment for a period of five years commencing on the date of the purchase deed and must not derive any rent from the premises during this 5 year period. If it is sold, no clawback should arise.

In the case of investors our 3 bed semi detatched units of 123m2 will be liable for stamp duty at 5%

(b) Houses/Apartments greater than 125 sq. metres

First-time buyers and owner-occupiers who purchase new houses or apartments greater than the specified floor area limit can avail of a reduction in the amount of stamp duty payable. Stamp duty is assessed on the greater of (a) the site price or (b) 25% of the total of the site cost and building costs (exclusive of VAT) at the appropriate reduced rate of stamp duty for a first time purchaser or non-first time purchaser.

An owner-occupier purchases a 5 bed at Grallow Wood measuring 240 sq. metres at a cost of €530,000 including VAT (site cost €50,000). The purchase price chargeable to stamp duty is 25% of the actual purchase price exclusive of VAT, in this case €467,000 [€530,000 - (VAT on original purchase price @ 13.5%) X 25%]. Therefore, the stamp duty payable on this home is:

€116,750 x 0% = Exempt

The following are the rates applicable to new houses/apartments greater than 125 sq. metres (taking into account the restricted consideration):