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Feb 10, 2014

Buying Guide


How high are realtors’ and lawyers’ fees in Ireland? What about other property purchase costs?

Transaction Costs

Who Pays?
Stamp Duty 1% - 2% buyer
Legal Fees 1% - 1.5% (+ 23% VAT) buyer
Registration Fees 0.15% - 1% buyer
Real Estate Agent’s Fee 1% - 3.5% (+ 23% VAT)
1% - 3.5% (+ 23% VAT)
buyer
seller
Costs paid by buyer 3.61% - 9.15%
Costs paid by seller 1.23% - 4.305%
ROUNDTRIP TRANSACTION COSTS 4.84% - 13.455%
See Footnotes
Source: Global Property Guide

How difficult is the property purchase process in Ireland?

There are no restrictions for foreigners purchasing real property in Ireland and the investment climate is favorable for foreign businesses.

Ireland Victorian style country house

Once you find a suitable property, make an offer and engage the services of a solicitor. The offer does not legally bind you to buy. When your offer has been accepted, you may if you wish, arrange for a survey for early detection of potential problems. Your solicitor will then draft the Deed of Conveyance, which is the document that transfers the property into your name. This will be sent to the seller’s solicitor for his approval.

The vendor’s solicitor will then draw up a contract for the sale of the house. Once your solicitor has reviewed this contract and is satisfied with it and to the title of the property, you are now in a position to sign contracts.

At this point you hand over a non-refundable 10% deposit. Estate agents are involved in the transaction until seller signs a contract with a chosen buyer. The conveyancing of the property usually takes 6 to 8 weeks.

Stamp duty should be paid now, and then the sale of property is registered at the Land Registry Office or at the Registry of Deeds. Depending on the title to the property this can take up to another six months.

Registration Fees

The solicitor will determine the nature of the title to your property. The costs incurred will depend on whether the title is held in the Land Registry or the Registry of Deeds. The Land Registry provides the system of compulsory title registration. The register is conclusive evidence of title to property and any right, privilege, appurtenance or burden appearing thereon.

On the other hand, the Registry of Deeds provides the system of voluntary registration for deeds and conveyances. The document filed in the Registry of Deeds is a memorial which is essentially a synopsis of the deed and also other statutory requirements.



Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Stamp Duty
Stamp duty in Ireland is levied on property transactions and is payable by the buyer. The applicable stamp duty rates depend on the market value of the property.

Stamp Duty on Residential Properties

Property Value, € Stamp Duty, €
Up to €1,000,000 0%
Over €1,000,000 2% on all value over €1,000,000
Source: Global Property Guide

Value Added Tax (VAT)
Value Added Tax (VAT) is levied at a standard rate of 23%, effective 01 January 2012.


Legal Fees:

There is no fixed rate of charges for legal fees in Ireland. Fee for conveyancing work offered by solicitors is negotiable. Some solicitors charge a fixed fee while others charge a percentage of the purchase price, around 1% to 1.5%, plus 23% VAT, is payable on legal fees.


Real Estate Agent’s Fee
Although nominally paid by the seller, real estate agent’s fees are usually included in the asking price, thus, effectively paid by buyers. Buyers pay a separate fee if they acquire the services of an auctioneer to purchase the property on their behalf. Auctioneer’s fee varies from 1% to 3.5% of the selling price, plus 23% VAT.



Registration Fee:

The solicitor will determine the nature of the title to your property. The costs incurred will depend on whether the title is held in the Land Registry or the Registry of Deeds. The Land Registry provides the system of compulsory title registration. The register is conclusive evidence of title to property and any right, privilege, appurtenance or burden appearing thereon.

On the other hand, the Registry of Deeds provides the system of voluntary registration for deeds and conveyances. The document filed in the Registry of Deeds is a memorial which is essentially a synopsis of the deed and also other statutory requirements.


Registration Fee

Property Value, € Fee, €
Up to €50,000 €425
€50,000 - €200,000 €600
€200,000 - €400,000 €700
Over €400,000 €800







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