Here are the taxes you need to pay when buying property in Ireland:
- Stamp duty: This is a tax that is paid on the purchase of property. The amount of stamp duty you pay depends on the value of the property. For example, if you buy a property worth €1 million, you will pay €15,000 in stamp duty.
- Capital gains tax: This is a tax that is paid on the profit you make when you sell a property. The amount of capital gains tax you pay depends on the amount of profit you make and your income tax band. For example, if you make a profit of €100,000 on the sale of a property and you are in the highest income tax band, you will pay €33,000 in capital gains tax.
- Local property tax: This is a tax that is paid on the value of your property. The amount of local property tax you pay depends on the value of your property and your local authority. For example, if you own a property worth €300,000 in Dublin, you will pay €1,000 in local property tax.
In addition to these taxes, you may also have to pay other fees, such as legal fees and registration fees.
Here are some tips for reducing your tax liability when buying property in Ireland:
- Buy a property below the threshold for stamp duty: The threshold for stamp duty is €1 million. If you buy a property below this threshold, you will not have to pay any stamp duty.
- Make sure you understand the capital gains tax rules: The capital gains tax rules can be complex. Make sure you understand the rules before you sell a property, so that you can minimize your tax liability.
- Claim any available exemptions or reliefs: There are a number of exemptions and reliefs available for capital gains tax. Make sure you claim any exemptions or reliefs that you are eligible for, so that you can minimize your tax liability.
It is important to note that these are just general guidelines. The actual taxes you pay will depend on your individual circumstances. You should always consult with a tax advisor to get specific advice about your situation.
