Sherry FitzGerald, Ireland’s largest estate agents, has welcomed the abolition of stamp duty for first time buyers through the publication of Finance (Number 2) Bill 2007.
The Bill, which has been approved by Cabinet, provides a stamp duty exemption for first-time buyers of a house or an apartment on all purchases on or after March 31st of this year.
Speaking about the announcement, Marian Finnegan Chief Economist of Sherry FitzGerald said “This is undoubtedly good news for first time buyers in the second hand market. The existing rate of stamp duty applicable to first time buyers was acting as a barrier to entry for this cohort of the population into the established property market. Following the amendment announced in this Bill, a first time buyer purchasing an average second-hand property in Ireland will be saving just over E11,000.
Ms Finnegan went on to say “It is however disappointing news for the rest of the market as the penal rate of stamp duty and the inequitable banding systems have been retained.”
Under the new legislation, a first-time buyer who executed a deed of transfer on a property on April 1 this year and presented it to Revenue on April 15 would qualify for a refund of any stamp duty paid, as the deed was executed after March 31.
Stamp duty rates for non-first-time buyers will start at 3 per cent on purchases above E127,000 and rise in a scale to 9 per cent on properties over E635,000.