Ireland – Property Taxes

What taxes and fees apply when buying a property in Ireland?

The primary transaction tax on property acquisitions in Ireland is Stamp Duty, which the buyer must remit to Revenue, Ireland’s national tax authority. Stamp Duty is levied whenever legal ownership of property changes hands. Unlike in a number of other European countries, there is no separate notarial charge or standalone transfer tax — your solicitor manages the filing of the Stamp Duty return and the associated payment as part of the overall conveyancing process.

With effect from 2 October 2024, the standard Stamp Duty rates on residential property purchases are structured as follows: 1% applies where the purchase price does not exceed €1 million; 2% applies to the slice of the price above €1 million and up to €1.5 million; and a 6% rate applies to any portion of the price exceeding €1.5 million. These tiered rates are current as of 2025 — always confirm the latest rates via Revenue’s Stamp Duty rates page.

To illustrate with a practical example: on a property purchased for €450,000, Stamp Duty amounts to €4,500 (1% × €450,000). For a higher-priced acquisition of €2 million, the total Stamp Duty comes to €50,000 — being €10,000 on the first €1 million at 1%, €10,000 on the following €500,000 at 2%, and €30,000 on the remaining €500,000 at 6%.

Where the property is a newly built home, Stamp Duty is calculated on the purchase price excluding VAT, which currently stands at 13.5%. VAT on new residential properties is charged at 13.5% and is embedded within the asking price. Buyers of existing (second-hand) properties are not required to pay VAT. This treatment mirrors the approach taken with new-build properties in countries such as France and Germany, where VAT applies to new construction but not to resale transactions.

Stamp Duty on non-residential property transfers — including commercial buildings, land not earmarked for residential development, and comparable assets — is levied at 7.5% as of 2025.

A higher Stamp Duty rate of 15% applies where a single purchaser acquires ten or more residential properties (other than apartments) within any 12-month period, an increase from the previous 10% rate introduced in October 2024. This measure is intended to deter large-scale bulk acquisitions of housing stock by institutional investors.

In all cases, it is the buyer rather than the seller who bears responsibility for Stamp Duty. The same rates apply regardless of whether the buyer is a resident or non-resident, and whether the property is intended as a primary home or a secondary one. Beyond Stamp Duty, purchasers should allow for solicitor and conveyancing fees (typically somewhere in the region of €1,500 to €3,000 or more, depending on transaction complexity) as well as Land Registry registration fees. Always obtain an up-to-date estimate from your own legal adviser, as costs vary across firms and transactions.

What taxes and fees apply when selling a property in Ireland?

Stamp Duty is not a charge that falls on the seller. The primary financial obligation facing a vendor is Capital Gains Tax on any profit arising from the sale — this is addressed in detail in the following section. That said, sellers face a number of transaction costs that need to be accounted for when planning a disposal.

Estate agent (auctioneer) fees in Ireland are generally expressed as a percentage of the sale price and are borne by the seller. Typical rates fall in the range of approximately 1% to 2% of the agreed price, though this varies depending on the agency and the location of the property — it is advisable to compare quotes and check current market rates with agents in the relevant area. Sellers are also responsible for their own solicitor’s fees covering the legal aspects of the sale, which commonly range from around €1,000 to €2,500 or more.

Before a sale can complete, the seller must demonstrate that all Local Property Tax (LPT) payments are fully up to date. If LPT clearance has not been obtained, difficulties can arise in completing or registering the transfer. Your solicitor will ordinarily manage this as part of the conveyancing process, but it highlights the importance of maintaining LPT payments throughout the period of ownership.

Sellers should also note that Capital Gains Tax on property disposals falls due in two tranches depending on when completion occurs. Disposals made between 1 January and 30 November result in a CGT liability payable by 15 December of that year. Disposals made between 1 December and 31 December carry a payment deadline of 31 January of the following year. The timing of a sale can therefore have a meaningful effect on cash flow planning.

How does capital gains tax work on property in Ireland?

CGT in Ireland is charged at a rate of 33% on most gains. The tax is applied to the net chargeable gain — that is, the difference between the disposal proceeds and the original acquisition cost, after accounting for any permitted deductions or reliefs. Ireland does not offer a reduced CGT rate for assets held over a longer period, unlike certain other countries that provide preferential treatment for long-term ownership.

A range of deductions can be applied to reduce the taxable gain. These include the cost of acquiring the asset together with associated expenditure such as legal fees, Stamp Duty, and auctioneer’s fees; costs incurred in connection with the disposal, including legal fees, agent’s fees, and advertising; and expenditure on capital improvements to the property that have enhanced its value.

Individual taxpayers benefit from a personal annual CGT exemption of €1,270. Where the chargeable gain falls below this amount, no CGT is owed. While the exemption is available each year, it cannot be transferred between spouses or civil partners.

For property acquired before 2003, indexation relief may be available. This allows the original cost to be adjusted for inflation up to 2003, thereby reducing the computed gain on properties held over many years.

By way of example: suppose you acquired an investment property in 2010 at a total cost of €200,000 (inclusive of Stamp Duty and legal fees) and sold it in 2025 for €380,000, incurring €8,000 in agent and legal fees on the disposal. Your gross gain is €180,000. Subtracting €8,000 in disposal costs produces a chargeable gain of €172,000. Applying the €1,270 annual exemption leaves a taxable gain of €170,730, on which CGT at 33% amounts to approximately €56,341.

Principal Private Residence (PPR) Relief provides a full or partial exemption from CGT where the asset in question has served as the seller’s main residence throughout the ownership period. To qualify for full relief, the property must have been the seller’s sole or principal home for the entire period of ownership; no part of it must have been used exclusively for business purposes; and the curtilage of the property should generally not exceed 0.4 hectares (roughly one acre). This relief is broadly comparable in purpose to the Private Residence Relief available in the UK or equivalent main home exemptions in many other European countries, though the specific rules vary.

An Irish-domiciled individual who is Irish-resident or ordinarily resident is subject to Irish CGT on gains arising anywhere in the world. A non-Irish resident who is also not ordinarily resident in Ireland remains liable to Irish CGT on gains from the disposal of Irish “specified” assets, which include land and buildings situated in Ireland. In practical terms, selling Irish property triggers an Irish CGT liability regardless of where the seller lives — non-residents enjoy no automatic exemption. Current rates and reporting obligations can be found on Revenue’s CGT guidance pages.

Are there any ongoing annual property taxes in Ireland?

Owners of residential property in Ireland are subject to an annual Local Property Tax (LPT). The LPT is conceptually similar to council tax in the United Kingdom or municipal property levies found in many other countries, though its calculation method is distinct — it is based on the property’s estimated open market value rather than a flat per-household charge or a rental valuation.

The LPT operates on a self-assessment basis, meaning the property owner determines the applicable valuation band and computes the tax accordingly. Properties are assigned to value bands, each carrying a fixed annual charge. A new LPT revaluation was undertaken as of 1 November 2025, establishing the value base for the 2026 to 2030 period. The market value of your property on that date will determine your LPT liability for each of those five years.

It is estimated that around 96% of properties across the country will remain within their existing valuation band. The majority of owners — those with properties valued at €525,000 or below as of 1 November 2025 — can expect an annual increase of between €5 and €25. To put this in concrete terms: a property worth €200,000 in November 2021 would likely be worth approximately €252,000 today; a Dublin owner in that bracket would have been paying €195 per year over the past four years and will pay €220 from 2026 onwards.

The widening of valuation bands by 20% has helped cushion the effect of rising property prices on LPT bills. For properties valued above €2.1 million, the LPT is not band-based but is instead calculated on the actual declared market value. The charge for such properties combines 0.0906% of the first €1.26 million of market value with 0.25% of the portion between €1.26 million and €2.1 million.

Each local authority retains the power to adjust the LPT rate within its area by up to 15% either way from the base rate. From 2026 onwards, this latitude is widened further, allowing local authorities to vary the charge by up to 25% upward or downward. As a result, the LPT bill for an identical property can differ depending on which local authority area it falls within.

The LPT applies to all owners of residential property in Ireland, including those living outside the country. It covers principal residences, holiday homes, and rental properties alike. There is no exemption for non-resident owners — the obligation attaches to the property rather than the owner’s place of residence. Revenue’s online LPT calculator allows you to estimate your annual liability. Band amounts are updated with each valuation period, so always confirm current figures with Revenue.

How does inheritance tax apply to property in Ireland?

Ireland does not have a standalone “inheritance tax” or “estate tax” in the conventional sense. The tax that applies to inherited property is Capital Acquisitions Tax (CAT), which is administered by Revenue. Crucially, CAT is levied on the beneficiary who receives the inheritance, not on the estate of the deceased. This distinguishes the Irish system from the United Kingdom’s Inheritance Tax model, under which the estate itself bears the tax before assets are distributed.

CAT is charged at a standard rate of 33% on the value of the inheritance above the relevant tax-free threshold. The applicable threshold depends on the relationship between the person who has died and the beneficiary. There are three principal threshold categories: Group A, Group B, and Group C. Since thresholds are revised periodically, you should confirm the current figures with Revenue’s CAT guidance or a qualified Irish tax adviser before making estate plans.

Group A covers gifts or inheritances received by a child from a parent (or, in certain defined circumstances, by a grandchild from a grandparent) and carries the highest tax-free threshold. Group B encompasses a broader category of relatives including siblings, nieces, nephews, and grandchildren, with a lower threshold. Group C applies to all other relationships and carries the lowest tax-free amount. Any amount inherited above the relevant threshold is subject to CAT at 33%.

Stamp Duty is not payable on property received under a will. However, CAT may still be triggered depending on the value of the estate and the relationship of the parties. Similarly, there is no CGT charge at the point of inheritance itself — though Capital Acquisitions Tax may apply. An important downstream consequence is that where an inherited property is later sold, the CGT calculation uses the original acquisition cost incurred by the deceased rather than the value at the date of inheritance.

For heirs living abroad, Irish CAT can still apply where the inherited property is located in Ireland. Revenue’s rules around residency and domicile determine the extent of CAT exposure in cross-border scenarios. Anyone in this position is strongly advised to obtain guidance from an adviser with expertise in both Irish tax law and the tax regime of the heir’s country of residence, as double taxation agreements may have a bearing on the overall liability.

How does gift tax apply to property transfers in Ireland?

Ireland does not treat gift tax as a separate levy — it forms part of the same Capital Acquisitions Tax (CAT) framework that governs inheritances. Gifts of property and inherited property are therefore taxed under precisely the same rules, applying identical rates and tax-free thresholds. This stands in contrast to countries such as France or Spain, where separate regimes with differing rates apply to lifetime gifts and inheritances respectively.

While Stamp Duty is not payable on property inherited under a will, it is payable when property is transferred as a gift during the donor’s lifetime. Where a property is gifted, all parties to the transaction are treated as accountable persons for Stamp Duty purposes. This distinction is significant: a lifetime gift attracts both CAT for the recipient and Stamp Duty on the transaction itself, whereas property received by inheritance under a will gives rise to CAT but not Stamp Duty.

It is essential to appreciate that CAT thresholds operate as lifetime cumulative allowances. Every gift and inheritance received from within the same relationship group across an individual’s entire lifetime is aggregated when assessing how much of the threshold has been consumed. If a substantial gift of property is received from a parent, for instance, this reduces the threshold remaining when that same parent later passes away and leaves an inheritance.

A small gift exemption of €3,000 per calendar year per donor exists, permitting any individual to transfer up to €3,000 to any other person each year entirely free of CAT. While this threshold is generally insufficient to shelter a property transfer on its own, it can form one element of a broader estate planning strategy. Non-residents who give or receive property situated in Ireland are subject to the same CAT rules as residents. Current thresholds and the small gift exemption amount should be verified with Revenue.ie.

For CGT purposes, a gift is treated as a disposal at market value, except where the transfer is between spouses or to certain qualifying charities. This means that the person giving away a property may incur a CGT liability on any accumulated gain in value, even where no money has changed hands — a potentially substantial cost that is easy to overlook when contemplating a property gift.

How is rental income from property taxed in Ireland?

Rental income derived from Irish property is subject to Irish income tax regardless of whether the landlord is based in Ireland or overseas. For Irish tax residents, rental income is aggregated with other income and charged at the standard and higher rates of income tax (currently 20% and 40% respectively as of 2025, depending on total income levels), as well as the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) where applicable. Non-resident landlords earning rental income from Irish property are equally liable to Irish income tax on that income, generally at the same rates as residents.

A broad range of expenditure may be set against rental income before the tax calculation is made. Deductible expenses typically include mortgage interest (subject to certain conditions), property management and agent fees, insurance premiums, the cost of repairs and maintenance (though not capital improvements), and property-related service charges. The extent to which mortgage interest is deductible has been subject to change in recent years, so it is worth checking the current position with Revenue or a qualified adviser.

Where a homeowner rents out a room within their principal private residence as residential accommodation, the income is exempt from tax provided the gross annual rental receipts do not exceed €14,000. This is the Rent-a-Room Relief scheme, and it offers a significant benefit to owner-occupiers who take in a lodger. The relief does not generally apply to short-term lettings, though specific exceptions exist.

Short-term holiday letting — for example, through platforms such as Airbnb — is subject to different treatment. Income from such arrangements does not qualify for Rent-a-Room Relief and is typically classed as trading income rather than rental income, which affects the applicable tax regime and the deductions available. Regulation of short-term letting in Ireland has been tightening progressively, with planning permission requirements now in force across many areas. Up-to-date guidance from Revenue.ie and the relevant local planning authority should always be consulted.

By way of illustration: suppose a non-resident landlord receives annual rental income of €18,000 from an Irish property. After deducting allowable expenses of €4,000 (covering agent fees, insurance, and repairs), the taxable rental profit is €14,000. At the standard rate of 20%, the income tax liability would be approximately €2,800 before any applicable surcharges or credits. In practice, non-resident landlords are generally required either to file Irish income tax returns directly or to appoint an Irish-based collection agent who withholds and remits tax on their behalf.

Landlords must register their tenancies with the Residential Tenancies Board (RTB). Revenue also provides a rental income tax credit that reduces the tax due on residential rental income by up to €600 in 2024, €800 in 2025, and €1,000 in 2026 and 2027. This credit is available only where the tenancy is registered with the RTB, or where the landlord lets a residential property to a public authority such as a local authority. Landlords who have not registered with the RTB are not entitled to claim this relief. Current rates, thresholds, and reporting requirements should always be verified at Revenue.ie.

Are there any tax advantages or incentives for buying property in Ireland?

Ireland provides a number of targeted tax reliefs and incentive schemes for those purchasing or owning property, though most are subject to qualifying criteria and some are time-limited. The availability and terms of these schemes are reviewed in annual budgets, so current status and eligibility should always be confirmed with Revenue or a specialist adviser before relying on any relief.

Help to Buy (HTB) scheme: First-time purchasers buying a newly built home may be entitled to a refund of income tax and DIRT (Deposit Interest Retention Tax) paid over the four years preceding the purchase, up to a maximum of €30,000 as of 2025. The property must be a new build and must be the buyer’s first home. The scheme has been extended on multiple occasions and was active at the time of writing — confirm its current status and applicable cap with Revenue.

Mortgage Interest Tax Relief (temporary): A temporary mortgage interest tax relief was extended by one additional year for homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 as of 31 December 2022. Relief is available on the increase in interest paid between the calendar years 2022 and 2024, at the standard rate of income tax (20%). This is a temporary rather than permanent measure, so confirm whether it continues to apply to your tax year.

Rent-a-Room Relief: As described in the rental income section, income from letting a room in an owner-occupier’s principal private residence is exempt from tax where gross annual rental receipts do not exceed €14,000. This allows homeowners to generate a meaningful tax-free supplementary income from their property.

Retirement Relief on farm and business assets: Individuals aged 55 or over who are disposing of qualifying business or farm assets may be able to access CGT relief. While this primarily benefits farmers and business owners, it represents a significant incentive for those disposing of qualifying property assets in those contexts.

Farm Consolidation Relief: This relief is available to farmers purchasing and selling agricultural land as part of a programme to consolidate their holdings and improve farm viability, applying a reduced Stamp Duty rate of 1% to qualifying transactions. Initially due to expire in 2025, Budget 2026 extended this relief to 31 December 2029.

Ireland does not currently operate a formal residency-by-investment or golden visa programme that links property purchase directly to a right of residence. Non-residents and foreign nationals are generally subject to the same tax incentive rules as residents, though the practical value of some income-tax-based reliefs may differ according to an individual’s overall Irish tax position. Specialist advice from a qualified Irish tax adviser is strongly recommended before acting in reliance on any relief scheme.

What are the tax implications for foreign nationals buying property in Ireland?

Ireland places no restrictions on property purchases by foreign nationals, and there are no additional Stamp Duty surcharges or supplementary transfer taxes aimed specifically at non-citizen buyers. The Stamp Duty rates set out above apply equally to all purchasers irrespective of nationality or country of residence. This contrasts with countries such as Canada and Australia, which have introduced additional property purchase levies targeting non-resident foreign buyers.

Once Irish property is owned, the tax obligations that arise are determined by the nature of the property and the type of income or gain generated — not by the owner’s citizenship. A non-Irish resident who is also not ordinarily resident in Ireland is subject to Irish CGT on gains from the disposal of Irish specified assets, including land and buildings in Ireland. Equally, the LPT applies to all residential property owners in Ireland regardless of where they reside.

If you live abroad while receiving rental income from an Irish property, you remain liable to Irish income tax on that income. Revenue requires non-resident landlords either to file Irish income tax returns themselves or to designate an Irish-based collection agent who deducts and remits the tax on their behalf. Non-compliance with this requirement can attract penalties.

Ireland maintains an extensive network of double taxation treaties (DTTs) with countries across the world. These agreements can influence how property-related income and gains are taxed in circumstances where you are also subject to tax in another jurisdiction. For example, a DTT may allow Irish CGT paid to be credited against a tax liability on the same gain in your country of residence. The precise effect depends on the terms of the treaty between Ireland and your particular country of residence — professional advice from someone familiar with both tax systems is essential.

Foreign nationals should also be mindful of their disclosure obligations in their country of residence. Many countries require residents to declare worldwide assets and income, encompassing overseas property holdings, rental receipts, and capital gains. Failing to report Irish property income or gains in your home country can give rise to penalties there even where full compliance with Irish law has been achieved. A cross-border tax specialist can assist in navigating both sets of requirements. The primary Irish resource for tax guidance is Revenue.ie.

How do I meet my key Irish property tax obligations step by step?

1. Engage a solicitor before exchange: Your solicitor will assess the Stamp Duty due, oversee Land Registry registration, and confirm with the seller that LPT compliance is in order before completion.
2. Pay Stamp Duty within 44 days of execution: Your solicitor will submit the Stamp Duty return electronically to Revenue and arrange payment. The deadline is 44 days from the date on which the transfer deed is executed.
3. Register for Local Property Tax (LPT): On taking ownership of a residential property, register with Revenue through Revenue.ie or the myAccount portal and submit your LPT return based on your self-assessed valuation of the property.
4. Pay LPT annually: LPT can be settled as a lump sum or spread across the year through salary deductions, pension deductions, or direct debit. Revenue accepts single payments via debit or credit card, bank transfer, or cheque, as well as direct debit and deduction at source from salary, pension, or social welfare payments.
5. Register tenancies with the RTB if letting: If you rent out the property, register the tenancy with the Residential Tenancies Board and submit annual income tax returns reporting your rental receipts and claiming allowable deductions.
6. Submit a CGT return on disposal: When you sell a property, file a CGT return using Form CG1 — or via the CGT section of the annual income tax return if you are within the self-assessment system. Pay any CGT by 15 December for disposals completed between January and November, or by 31 January of the following year for December disposals.
7. Seek professional advice on inheritance and gifts: Before transferring or receiving Irish property by way of gift or inheritance, consult both a solicitor and a tax adviser to understand your CAT exposure, the thresholds available to you, and any relevant cross-border treaty considerations.

Frequently asked questions

Do I pay Capital Gains Tax if I sell my Irish property as a non-resident?

Non-residency does not exempt you from Irish CGT on the sale of Irish property. Where you dispose of Irish real estate, you remain subject to Irish CGT at the standard rate of 33%, regardless of where you are based. You are required to file a CGT return with Revenue and pay any tax owed by the applicable deadline. A qualified Irish tax adviser can clarify how this obligation interacts with any tax liability in your country of residence and whether a double taxation treaty reduces the overall burden.

Can I deduct mortgage interest on rental income in Ireland?

Mortgage interest is generally an allowable deduction against rental income for Irish landlords, though the rules governing this have changed in recent years and have at times been linked to registration with the Residential Tenancies Board (RTB). The current position should always be confirmed with Revenue.ie or a tax adviser, as partial restrictions have applied in certain years and the rules may continue to evolve.

Is there a wealth tax on property in Ireland?

There is no standalone annual wealth tax on property in Ireland. The nearest equivalent is the Local Property Tax (LPT), an annual levy based on the estimated market value of residential property. This is, however, a comparatively modest charge when set against wealth taxes in some other countries. There is no supplementary surcharge on high-value properties beyond the tiered LPT calculation that applies to properties valued above €2.1 million.

Is Stamp Duty different for first-time buyers in Ireland?

As of 2025, there is no separate lower Stamp Duty rate for first-time buyers in Ireland. The standard tiered rates — 1% on amounts up to €1 million, 2% on the portion between €1 million and €1.5 million, and 6% above €1.5 million — apply to all residential purchasers alike. First-time buyers may, however, be eligible for the Help to Buy (HTB) scheme, which provides a rebate of income tax and DIRT previously paid. Eligibility criteria and current scheme parameters should be checked directly with Revenue.

Do I pay tax on the sale of my main home in Ireland?

Where a property has served as your only or main residence throughout your period of ownership, you may be entitled to full or partial relief from CGT under Principal Private Residence (PPR) Relief. Full relief requires that the property was your sole or primary home for the entire ownership period and that the curtilage does not exceed 0.4 hectares. Partial relief may be available where part of the property was rented out or used for business purposes. If your situation is not straightforward, Revenue’s guidance or a tax adviser’s input is recommended.

Are non-residents exempt from the Local Property Tax?

No. The LPT is imposed on all owners of residential property in Ireland regardless of where the owner lives. The obligation covers principal residences, holiday homes, and rental properties. Residing abroad provides no exemption — the duty to file an LPT return and pay the annual charge falls on the owner of the property. Revenue’s online LPT calculator can be used to estimate your liability.

How does Capital Acquisitions Tax (inheritance/gift tax) work for foreign heirs inheriting Irish property?

Irish Capital Acquisitions Tax (CAT) may be triggered when a foreign-based heir inherits Irish property, as CAT can apply where the property is located in Ireland or where the deceased or the beneficiary was Irish-resident at the relevant time. The standard CAT rate of 33% applies to the value received above the tax-free threshold, which is determined by the relationship between the beneficiary and the deceased. Foreign heirs should seek advice from a professional experienced in both Irish CAT and any applicable double taxation treaty with their country of residence, and should verify current thresholds at Revenue.ie.

Is VAT payable when buying a property in Ireland?

VAT at 13.5% applies to newly built residential properties and is included within the purchase price charged by the developer rather than being invoiced separately to Revenue. For new builds, Stamp Duty is calculated on the purchase price net of VAT. Purchasers of existing second-hand properties are not subject to VAT. The VAT treatment of any specific transaction should always be confirmed with your solicitor and the developer or seller before proceeding.