The stamp duty rate for the sale or transfer of non-residential property was increased from 2% to 6% in Budget 2018.
An anti-avoidance measure has now been introduced in Finance Bill 2017 whereby stamp duty of 6% will now apply to the sale or transfer of shares which derive the greater part of their value from Irish commercial property. Previously, transfers of shares were subject to stamp duty of 1%. The new 6% rate of stamp duty applies to corporate entities, interests in partnerships and units in Irish Real Estate Funds (IREFs).
The new 6% rate should not apply to companies / entities who hold Irish properties as a long term rental investments or where the property is residential property.
This new measure takes effect for any instrument executed on or after 6 December 2017.
However, where a contract for the sale of shares has been entered into before 6 December 2017, stamp duty of 1% will apply provided the instrument is executed before 1 March 2018.