Stamp Duty For Tenants - Another Consequence Of The Continuing Increase In Rents

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Maples Group

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The Maples Group is a leading service provider offering clients a comprehensive range of legal services on the laws of the British Virgin Islands, the Cayman Islands, Ireland, Jersey and Luxembourg, and is an independent provider of fiduciary, fund services, regulatory and compliance, and entity formation and management services.
As highlighted by the Irish Times today, a charge to stamp duty arises on residential tenancies where the annual rent exceeds €30,000 a year (€2,500 per month).
Ireland Tax

Originally published July 14, 2017

As highlighted by the Irish Times today, a charge to stamp duty arises on residential tenancies where the annual rent exceeds €30,000 a year (€2,500 per month). With average monthly rents surpassing boom time figures, many tenants may be caught unawares by this tax charge, amounting to 1% of the annual rent.

Stamp duty is payable through Revenue's Online Service (ROS) and many ordinary tenants will not currently have access to this service. It is also worth noting that documents which are liable to stamp duty (i.e. the lease in this case) which have not been correctly stamped, cannot be relied upon in court. Estate agents, in particular, may want to consider the implications for landlords and tenants and whether their standard form lease deals with the stamp duty liability. In a well drafted lease, the tenant will be obliged to pay the stamp duty.


Tenants paying more than €2,500 monthly face 1% stamp duty bill

http://www.irishtimes.com/business/personal-finance/tenants-paying-more-than-2-500-monthly-face-1-stamp-duty-bill-1.3154111


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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