Government gets 40% of house price

UP to 40% of the price of a house goes to the Government in the form of taxes and levies, according to new research by the Irish Home Builders Association.

The builders’ lobby group, which is part of the Construction Industry Federation, said tax generated by the construction and sale of new houses accounted for over €5 billion last year.

The IHBA research claimed that builders’ profits accounted for just 5% of the sale price of a house. Taxes and levies, such as capital gains tax, stamp duty, VAT and income and corporation tax, were to blame for the perception that builders were making excessive profits from new homes.