New Immovable Property fiscal measures – June 2020
The government announced temporary fiscal incentives for both property buyers and sellers, as part of a COVID-19 economic recovery package. This is effective as of 9th June 2020 until 1st April 2021:
All final deeds signed during this period, whereby 8% or 10% final withholding tax was previously applicable, are now being reduced to 5% on the first €400,000 in value. (Legal notice 241/2020)
All finals deeds signed during this period, whereby a 5% stamp duty rate was previously applicable, are now being reduced to 1.5% on the first €400,000 in value. Schemes that are currently in existence, such as First Time Buyers and Urban Conservation Areas (UCA), can be used in conjunction with this rate of stamp duty. (Legal notice 240/2020)
These new measures apply to transfers of immovable property made on or after the 9th June 2020, but before 1st April 2021. These transfers will qualify for the reduced rates if the notice of the final deed of transfer is given to the Commissioner of Inland revenue by the 30th April 2021.
For more information, feel free to contact us.