Following today's Budget announcement, here are the key updates for the Property Industry from Budget 2025:
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Stamp Duty
  • A new tier of stamp duty has been introduced in respect of residential properties exceeding a value of €1,500,000.00.  Stamp duty on the portion of the purchase price in excess of €1,500,000.00 will now be chargeable at 6%.  
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  • The existing rates of 1% stamp duty on residential properties up to the value of €1,000,000.00 will remain, together with the existing second tier rate at 2% on values from €1,000,001 to €1,500,000.00.
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  • There will be an increase in the stamp duty rate applicable to “Bulk acquisitions” from 10% to 15%. Bulk Acquisitions refer to acquisitions of 10 or more residential units within a 12-month period. There is no minimum value threshold in respect of such transactions.
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  • The stamp duty relief available to farmers who lease land and the Young Trained Farmers’ Stamp Duty Relief has been amended. In order to avail of the relief now farmers must pursue their farming business through a company thus creating an incentive for farmers to incorporate their business.
Vacant Homes Tax
  • There will be an increase in the rate of vacant homes tax from five to seven times the property’s existing base for Local Property Tax. Vacant Homes tax applies to residential properties which are occupied for less than 30 days in a 12-month period.
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Residential Zoned Land Tax
  • The Residential Zoned Land Tax which had been subject to a number of postponements will come into effect of 1st February 2025 and will be payable at a rate of 3% of the market value of residential zoned land.
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  • Budget 2025 introduces an option for landowners to re-zone their lands to reflect the economic activity carried out on their land.  Presumably this amendment to the tax regime has been introduced in order to deal with the pre-Budget concerns around farmers being liable for the Residential Zoned Land Tax on lands which were actively in use for agricultural purposes. The Minister will issue guidelines to local authorities who will be responsible for the re-zoning of lands.

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