IRELAND Law and Practice Contributed by: Diarmuid Mawe, Craig Kenny, Katelin Toomey and William Fogarty, Maples Group
sideration payable for the property, or the market value in certain instances. Usually, the buyer is liable for the payment of stamp duty, although both parties can be liable in certain transactions, such as voluntary transfers. Where an instrument is liable to stamp duty, a stamp duty return must be filed online via the Revenue’s e-stamping system within 44 days. Failure to file and pay within this period will result in late filing and interest charges. The rate of stamp duty payable on the transfer of non-residential (commercial) property is cur - rently 7.5%. The rate of stamp duty on transfers of resi - dential property is 1% on considerations up to EUR1 million and 2% on consideration over this threshold. Since May 2021, an increased rate of 10% stamp duty applies if ten or more resi - dential units are acquired in a 12-month period. This measure was enacted to discourage large- scale residential acquisitions. The increased rate applies if the units are in one development/area or are located in different areas throughout the country. It does not apply to apartment units. Where non-residential property is transferred and subsequently utilised for the construction of residential accommodation, a stamp duty refund is available, which effectively reduces the rate from 7.5% to 2%. This scheme is subject to several conditions including that construction must have commenced by 31 December 2025 and within 30 months of the date of transfer of the land. Stamp duty on the transfer of Irish shares is gen - erally charged at 1% of their value. Transfers of shares or interests of corporate entities (includ - ing Irish and non-Irish incorporated companies)
and partnerships can be subject to 7.5% duty where the entity derives over 50% of its value from Irish land intended for development, held as trading stock, or held with the sole or main object of realising a gain on disposal. This provi - sion is subject to a number of conditions, includ - ing that the transfer is one that transfers control of the land. Transfers of minority holdings may not be impacted. Transfers of entities holding certain residential property may also be subject to the 10% rate of stamp duty outlined above. Stamp duty exemptions are available for trans - fers of property between group companies and on certain transfers of property between spous - es, civil partners, and cohabitants. 2.11 Legal Restrictions on Foreign Investors All investors, including foreign investors, need to comply with anti-money laundering legislation. A new law, the Screening of Third Country Trans - actions Act 2023 (the “2023 Act”) is due to come into force in the second quarter of 2024. This will establish Ireland’s first regime for screening investments from third-party countries (ie, those outside the EEA and Switzerland) in certain Irish industries that could pose a risk to the state’s security or public order, in conjunction with an EU regulation. The industries include energy, transport, water, health, communications, media, data processing or storage, aerospace, defence, electoral or financial infrastructure, and sensitive facilities, as well as land and real estate crucial for the use of such infrastructure. Transactions falling within the scope of the act will need to be notified to the Minister for Enterprise, Trade and Employment in advance and will require the consent of the minister to proceed.
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