It is not possible to establish the precise tax receipts arising in respect to a dwelling costing €300,000 as this would be dependent on various factors and assumptions. A number of taxes could apply, especially in the case of a new house. In the case of a new house, VAT applies at the reduced rate of 13.5% on its construction and is included in the final price of the property to the purchaser. No VAT applies in respect of the purchase of a second-hand house.
In the case of stamp duty, there is no stamp duty on the purchase of new residential property for owner-occupiers, including first-time buyers, where the dwelling is not greater than 125 sq. m. If a new dwelling is more than this size, stamp duty is charged on the site value or on one quarter of the full house value, whichever is the greater value, in the case of owner-occupiers, including first-time buyers, at the relevant rates. In the case of investors of new residential property, stamp duty at the rate of 5% is chargeable where the consideration is €300,000.
Regarding the transfer of a second-hand property costing €300,000, a stamp duty rate of 5% applies except for first-time buyers where a reduced stamp duty rate of 3.75% applies. In addition to VAT and stamp duty, tax receipts in the form of income tax or corporation tax would arise on any tax adjusted profits made by the builder in the case of a new house. In addition, PAYE and PRSI would apply in the case of the employees involved in the construction of the house. Where the builder purchased the site from a landowner, both capital gains and stamp duty would also normally apply.