Recent times has seen the practice of the bulk buying of homes by large institutional investors in estates across Ireland. This has taken away the opportunity from many individuals and families to buy their own home. The government is attempting to counteract this by imposing a 10% stamp duty rate on the purchase of 10 or more residential houses bought anywhere in the State of Ireland by an individual or institution.
The 10% stamp duty rate will apply on the cumulative purchase of residential houses purchased over a 12-month period. On the tenth purchase the 10% stamp duty rate will be triggered and will then also apply to the preceding 9 purchases. The previous amount paid will be offset against the total amount then due.
Any houses purchased prior to this measure coming into effect will be counted toward the ten-limit head count. The 10% stamp duty rate will not be applied retrospectively however to these pre-purchased units. There is a three-month transitional time period for the measure to take effect. This applies to all contracts that have been entered into but have not been completed prior to the measure coming into effect.
The measure will not apply to the purchase of apartments. The government has defended its decision not to apply the measure to apartment units by noting that the price point on apartments is already overstretched and would take much needed rental units out of the market.
Housing bodies and local authorities are exempt from the measure. The measure will apply to the multiple purchases of residential houses paid for indirectly through shares or units of investment funds.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
