Dáil Éireann Debate, Thursday - 18 January 2024
164. Deputy Alan Farrell asked the Minister for Finance if overseas pension investors are entitled to avail of lower stamp duty charges if they purchase houses in bulk and make them available for social housing; and if he will make a statement on the matter. [2123/24]
Amharc ar fhreagra166. Deputy Alan Farrell asked the Minister for Finance if overseas pension investors are subject to higher stamp duty if they purchase houses in bulk; and if he will make a statement on the matter. [2116/24]
Amharc ar fhreagraI propose to take Questions Nos. 164 and 166 together.
I am advised by Revenue that the standard rates of stamp duty applying on the acquisition of residential property are 1% on values up to €1 million and 2% on values exceeding €1 million. Section 31E of the Stamp Duties Consolidation Act (SDCA) 1999 provides for a higher 10% rate of stamp duty to be charged on the acquisition of residential properties situated in the State, excluding apartments, where a person acquires at least 10 such properties during any 12-month period.
The higher 10% rate of stamp duty applies regardless of whether the person acquiring the property is situated in the State or overseas. Furthermore, although the SDCA 1999 provides for a specific exemption in relation to certain categories of pension schemes, that exemption does not apply for the purposes of the higher 10% rate. Accordingly, overseas pension investors are subject to the higher rate of stamp duty in the same way as domestic investors.
Revenue has published detailed information on the higher 10% rate of stamp duty, which is available on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-05-provisions-applicable-to-particular-instruments/section-31e-stamp-duty-on-certain-acquisitions-of-residential-property.pdf.
The higher 10% rate of stamp duty applies in circumstances where the residential property is to be made available for social housing. Accordingly, overseas pension investors are not entitled to avail of lower stamp duty charges if they purchase houses in bulk and make them available for social housing.
However, section 83DB SDCA 1999 provides for a partial repayment of stamp duty paid on the acquisition of residential property at the higher rate of 10% pursuant to section 31E SDCA 1999 where the property is let to a local authority or approved housing body for social housing purposes for a term of not less than 10 years within 2 years of the acquisition. The amount to be repaid under section 83DB is the difference between the amount of stamp duty paid at the higher rate of 10% and the amount of stamp duty that would have been payable had the standard rate(s) applied.
In order to qualify for a repayment under section 83DB, certain conditions must be complied with, details of which are set in Revenue guidance which is available at www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-83db-repayment-of-stamp-duty-in-respect-of-certain-residential-units.pdf .
