Stamp duty is a tax imposed on the instrument executed to transfer certain properties. The stamp duty on a residential property is calculated as follows:
- 1% of the market price up to €1,000,000
- 2% on the balance of the purchase price above €1,000,000
Residential properties are defined as buildings which at the time of the transfer are used or are suitable for use as a dwelling. They will also include the curtilage of the property (which is the normal ancillary domestic outhouses, yard, gardens etc) up to an area in size of one acre exclusive of the site of the dwelling. For any house with a garden larger than 1 acre, non-residential stamp duty will apply to the value of that part of the garden larger than one acre. An estate agent valuation will be required to apportion the value of such a purchase between the house and one acre portion and the balance of the site in order to calculate the correct stamp duty in such instances. That non-residential stamp duty was increased from 6% to 7.5% for any transfers on or after 8 October 2019. 
If you purchase a non-residential property with the intention of constructing a residential dwelling, you may be eligible for a partial refund of the non-residential stamp duty paid, subject to compliance with certain conditions under section 83D of the Stamp Duties Consolidation Act 1999 (as amended). The partial refund available is 2/3 of the 6% non-residential stamp duty that would have applied to purchases on or before 8 October 2019 (i.e. your effective rate of stamp duty will be reduced to 2% to reflect what was the rate of stamp duty applicable to non-residential properties before the increase to 6% in 2017). It has yet to be confirmed whether that refund will be increased to reflect the new 7.5% rate of stamp duty as that level of detail will be contained in the Finance Act yet to be published.
The main conditions applicable to any refund application are:
- you must have paid the full non-residential stamp duty applicable at the time of the purchase;
- you must commence construction of the residential dwelling before the earlier of 31 December 2021 or 30 months following the day after the purchase of the land;
- you must complete the construction of the residential dwelling within 2 years of the council acknowledging receipt of a valid commencement notice for the works (i.e. 31 December 2023 at absolute latest if the work commenced on the last possible date of 31 December 2021);
- the claim for a refund is made after construction commences on foot of a valid commencement notice and no later than 4 years after the commencement notice is acknowledged as received by the council; and
- you must make you claim for a refund electronically to the Revenue.
If subsequently, the residential property is not completed within the allowable timeframes, there can be clawback of the refunded stamp duty.