IRELAND Law and Practice Contributed by: Diarmuid Mawe, Craig Kenny, Katelin Toomey and William Fogarty, Maples Group
• where property is derelict and poses a danger in the community; • for the purpose of developing infrastructure; and • for conservation/preservation purposes. NAMA has extensive statutory powers to acquire land compulsorily, but it is due to conclude its operations and wind down by the end of 2025. The IDA also has the ability to acquire prop - erty compulsorily for the purpose of industrial development. A key function of the IDA’s role is acquiring land for development purposes, so the IDA’s statutory power to acquire land compulso - rily is quite broad. 2.10 Taxes Applicable to a Transaction A transfer of Irish real estate and certain other property, including shares, is liable to stamp duty payable to the Irish Revenue Commission - ers ( “Revenue” ). Stamp duty is charged on the consideration payable for the property, or on 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 residential property is 1% on consideration up to EUR1 mil - lion, 2% on the next EUR500,000 and 6% on any balance consideration. Since 2 October 2024,
an increased rate of 15% stamp duty applies if ten or more residential units are acquired in a 12-month period. This measure applies to hous - es and duplexes (excluding apartments) in one development or area, or where they are located in different areas throughout the country. 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 15% 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.
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