Celtic Properties Real Estate Alliance - Auctioneers, Valuers, Estate Agents, Property Management, Letting Agents & Property Advisors.

The Basic Costs of Purchasing a Property in Ireland are as follows:

1. Surveyors Fees: 
Surveyors Fees can range from €500/600 + VAT depending on the complexity of the survey required. All clients are advised to seek the opinion of a surveyor and in the case of a mortgage approval your Bank/Building Society will insist on one before draw down of your loan.

 2. Solicitors Fees:
Fees can amount to approx 1% of the purchase price of the property.

Stamp Duty Explained – Updated for Finance Bill 2007 

1. Introduction

Stamp-duty liabilities can be as high as 9% of the price of a property so it is very important to understand how stamp duty works and to take this into account when buying your home.  Stamp duty is the tax payable to the government for changing the documents that specify who owns a particular property.  Thanks to the changes in the 2007 finance bill First-time-buyers will not have to pay any stamp duty on 2^nd hand or new homes.  (Previously first time buyers where only exempt on 2^nd hand properties below €317,500 or new homes below 125 sq. m).  Any stamp duty paid by a first time buyer after 31 March 2007 can be claimed back from the revenue commissioners.

The main factor for calculating stamp duty is the type of property being sold:
 

1. Second-Hand Homes (i.e. Previously occupied homes)

The stamp duty due on the purchase of a second-hand home depends on whether you’re a first-time-buyer or not and the price of the property being purchased. 

The table below will help you work out your stamp-duty liability:

            3.   New Homes 

If you are a first time buyer no stamp duty is payable.  For everyone else the stamp duty on new homes depends primarily on the area of the property.  If the property is under 125 square metres and you’re an owner occupier (i.e. you plan on living there, but it is not your first home purchased) NO DUTY is payable. 

Otherwise, if the property is over 125 square metres or you’re an investor, the stamp duty is calculated from the table below using whichever of the following two values is greatest:

A.      The cost of the site OR

B.       25% of (the cost if the site + the building costs less VAT @ 13.5%)

1. Land & Sites

            Stamp duty for the purchase of land & sites is based solely on the price and there

            are no reductions for first-time-buyers or owner-occupiers.  It is calculated as                                                  

follows:

1. Further Details

When closing the sale, your solicitor will calculate the exact stamp duty due and you will be required to pay this amount to the Revenue Commissioners.  Your solicitor will usually arrange this payment. 

You may also be liable for a small stamp duty on your mortgage deeds.  This duty applies to mortgages in excess of  €254,000.  The duty payable is €1 for every €1,000 of your mortgage.  This duty is negligible and should not affect you greatly. 

There are further exemptions from stamp duty for the sale or transfer of property between parent and child and other close relatives. 

See www.oasis.gov.ie for more information.   

Investment Potential:

Purchasing a property in Ireland is a worthwhile and astute investment. Property values (commercial & residential) have consistently increased over the past 10 years and are expected to continue to rise. Investment properties and holiday homes continue to give good returns. Many new developments i.e. student accommodation, holiday homes, urban developments etc benefit from various tax incentive schemes for more info www.revenue.ie.

Building Permission:

All new construction and refurbs of existing properties must obtain the relevant planning consents. This can be obtained from Cork County Council. The process is difficult and it is advised to obtain the help of a competent planning consultant.For basic information there are two types of planning consent. 

Full planning - This is where full drawings and plans have been submitted to the Council and been approved. Estimated time for an application 3+ months. No development can take place without this approval. It is wise when looking at planning approvals in the South West Area to investigate all conditions as some can prohibit the transfer of the permission to third parties.

Outline permission -  is a permission in principle that a development can take place, no plans etc have been submitted. Full permission must still be sought.  Some buildings plots can be sold 'subject to planning permission' in this case the purchaser contracts to purchase, then applies for the permission and only completes the purchase when permission has been granted. 

Income Tax:
Standard rate: 20% Top rate: 42%

Capital Gains Tax:
Capital gains tax applies on sale of property excluding ones principal residence. Disposals of all property regardless of whether it is development land are subject to a 20% rate.

Population:

The population of Southern Ireland is 4.1 million, over half is concentrated in and around Dublin.West Cork has a very obvious cosmopolitan ambience, American, British, Dutch, French, German, Swiss and other nationalities reside in our  area and are warmly welcomed.

Climate:

We enjoy a mild climate in West Cork as we are influenced by the Gulf Stream, snow is a rarity and temperatures rarely fall into minus figures.

Environment:

The running landscape of Wet Cork is clean, green, unpolluted and healthy and must be seen to be appreciated.

Health Care:

Our health system is broadly similar to that of the UK. Everybody is entitled to free hospital care and for those below certain income levels GP care and medication is also free. We also have a Voluntary Health Insurance Service, V.H.I. and B.U.P.A.There are hospitals at Bantry, Dunmanway, Schull and Skibbereen.GP’s and dentists in every town. If you, your family live/work within the EU under the Regulations on Social Security Insurance credited in other EU countries can be used here if required to help you qualify for Social Welfare Services.

Education:

Primary School (first level) is free and there are good schools in every Parish.Secondary School (second level) is free, there is a good standard in most towns and transport services are available from rural areas.Third Level – Colleges tuition free and there is a grant system for maintenance etc this is income related.

TV & Communications:

Basic Irish channels approx 4 are available throughout the country. Multi-Channel and Sky services are also available.Telephone, mobile communication, internet and broadband available in most areas.