Stamp duty is a tax levied by the government on the purchase of property in Ireland. Technically, it is a tax based on the conveyance document which transfers the property to you. It can be subdivided into categories such as residential, commercial or land related stamp duty. Normally, your Solicitor will advise you of the relevant amount you will have to pay which they will organise for you. However, you should factor stamp duty into your budget before bidding on a property in order to ensure you have sufficient funds available for the transaction.

There have been many modifications to residential stamp duty in Ireland over the last few years. The most recent changes were announced in the Budget for 2011.  

  Stamp duty for residential properties is now calculated as follows:

•              For properties costing up to €1 million, the rate is 1%.
•              For properties costing over €1 million, the rate is 2% (on the balance over €1 million)

The previous exemptions which applied to stamp duty have been abolished such as first time buyers or amounts under €127,000.

If you have already entered into a contract to purchase a property prior to 8th December, 2010, you can avail of the new reduced rates provided the contract is executed before 01st July, 2011. 

You can view the relevant changes to stamp duty by viewing the government information here.