I am advised by Revenue that a lease for property is subject to Stamp Duty on both the premium and the rent. The rate of duty on the premium for all residential leases mirrors the rate applicable to conveyances for residential property, for the years in question this being 1% on the first €1 million, and 2% on any excess over €1 million. The rate on the average yearly rent is 1% for a term not exceeding 35 years or for any indefinite term, and 6% for a term exceeding 35 years but not exceeding 100 years. Where a lease is for any indefinite term, it is treated as a lease for a deemed fixed period of one year, the lease growing each year by a further year. A rate of 12% of the average annual rent applies where the length of the lease exceeds 100 years. It is assumed that the Deputy is referring to residential leases not exceeding 35 years or for any indefinite term.
Residential leases for a term not exceeding 35 years or any indefinite term where the rent does not exceed €30,000 per annum are exempt from Stamp Duty. The legislative basis for this exemption is contained within the Lease head of charge in Schedule 1 of the Stamp Duty Consolidation Act 1999. This exemption threshold was last amended by s. 125(1)(c) of the Finance Act 2008, where previously the threshold was €19,050.
The available Stamp Duty data identifies short term leases on residential property which would include residential leases not exceeding 35 years or any leases for any indefinite term where rent exceeds €30,000 per year (liable to a rate of 1%) and leases for a term exceeding 35 years but not exceeding 100 years (liable to a rate of 6%). It is not possible to provide a breakdown between the classes of lease. The table below shows the number of, and yield from, short term leases on residential property. Data for 2012 and earlier years are not available.
Residential Short Term Lease Less than or equal to 100 years
|
Year
|
Number
|
Duty
€m
|
|
2013
|
80
|
0.05
|
|
2014
|
140
|
0.07
|
|
2015
|
178
|
0.09
|
|
2016
|
238
|
0.15
|
