Property Tax in Ireland: 2019-2020 Guide

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 Wise. More on that later.

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Now, back to what you came to read.

What is property tax in Ireland?

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.

What kinds of property taxes are there in Ireland?

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

• Whenselling 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.

What should I know about paying stamp duty for my property in Ireland?

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.

What should I know about paying capital gains tax for my property in Ireland?

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.

Paying maintenance tax for your property in Ireland

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

What should I know about paying local property tax for my property in Ireland?

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.

Are there any property tax deductions I can claim in Ireland for 2019-2020?

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.

When do I pay my property taxes in Ireland?

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?.

How do I pay my property taxes in Ireland?

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.

Paying property taxes online

If you can pay online will depend on whether you want to pay for Local Property Tax, Capital Gains Tax or Stamp Duty.

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 *

Contact Irish Tax and Customs Revenue Agency

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.

Contact the Revenue Agency, and visit the property tax section of their site for full information.²³

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Sources used:

Sources checked on 20-September 2019.