Dáil Éireann Debate, Thursday - 30 March 2023
131. Deputy Brendan Griffin asked the Minister for Finance what rate of stamp duty applies to a commercial building that is being purchased to convert it to a domestic house; and if he will make a statement on the matter. [15811/23]
View answerStamp duty on the sale of residential properties such as apartments and houses is chargeable at the rate of 1% where the consideration does not exceed €1 million. Where the consideration exceeds €1 million, stamp duty is chargeable at 1% on the first €1 million and 2% on the balance. Stamp duty at the rate of 7.5% applies to the sale of non-residential land, which includes commercial buildings.
Notwithstanding the higher rate of stamp duty that applies on the sale of non-residential land, section 83D of the Stamp Duties Consolidation Act 1999 provides for a partial refund of stamp duty paid on the sale of non-residential land where it is subsequently developed for residential purposes. This includes situations where an individual purchases a non-residential building and converts it for residential use. The repayment scheme is intended to encourage the building of houses and apartments.
Where section 83D applies, a refund amounting to some or all of the difference between the old non-residential rate of 2% and current rate of 7.5% may be claimed by the purchaser of the land. The main conditions for availing of the refund are that the purchaser must have paid 7.5% stamp duty when acquiring the land, construction work must have commenced within 30 months of the land being purchased and the residential development must be completed within 30 months of the commencement of construction operations. In cases where existing non-residential buildings are converted for residential use, Revenue is prepared to treat internal adaptation work as construction operations.
Revenue has published detailed guidance on the operation of section 83D, which is available on its website at
www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-83d-residential-development-refund-scheme.pdf .
