Budget brings Irish property 'in line with international norms'

Estate agents, Sherry FitzGerald, have welcomed the announcement of a reduction in the rate of stamp duty on residential property.

Marian Finnegan, Chief Economist with Sherry FitzGerald said: "This is undoubtedly good news for the property market. The penalising rate of stamp duty applicable in the housing market has for too long acted as a barrier to entry into the established property market and was in effect a tax on mobility. This new simplified approach now brings Irish property in line with international norms and should facilitate greater transaction levels."

She said the average value of a second-hand house in Dublin currently stands at approximately €240,000, according to the ESRI.

Under the old Stamp Duty regime a purchaser paid €8,050 in stamp duty. Following today’s, announcement the new Stamp Duty liability on this property will be €2,400 - a saving of €5,650.

Ms Finnegan said the equivalent property outside the capital is currently valued at €200,000.

Stamp Duty on this property would have amounted to €5,250 prior to the amendment announced today. The new Stamp Duty liability will be €2,000 or a saving €3,250.