WealthGuide
16 January 2025•Mortgages

Additional Costs of Buying a Home in Ireland: Stamp Duty, Legal Fees, and More

When purchasing a home in Ireland, it’s essential to budget for additional costs beyond the purchase price and mortgage. These expenses can add up quickly and may catch buyers off guard if not planned for.

By WealthGuide

1. Stamp Duty

Stamp duty is a mandatory tax payable to the Revenue Commissioners when purchasing property in Ireland. The rates are:

  • 1% of the property value for homes priced up to €1 million.
  • 2% on any amount exceeding €1 million.

For example, if you purchase a home worth €400,000, you’ll pay €4,000 in stamp duty. For new builds, stamp duty is calculated on the property price excluding VAT (currently 13.5%), which can slightly reduce the amount owed.

2. Legal Fees

A solicitor is required to handle the legal aspects of transferring ownership (conveyancing). Legal fees typically range from €1,500 to €3,000 plus VAT, depending on the complexity of the transaction. Additional outlays such as land registry fees and property searches can add another €400 to €1,000.

Key legal costs include:

  • Land Registry fees: €400–€800 depending on property value.
  • Mortgage registration fee: €175.
  • Search fees: Approximately €90–€200.

3. Valuation Fees

Before approving a mortgage, lenders require a professional valuation to confirm the property’s market value. This typically costs between €150 and €250 plus VAT.

4. Surveyor’s Report

A surveyor’s report is highly recommended, especially for second-hand homes, to identify structural issues or defects. This service costs approximately €300 to €500, depending on the extent of the inspection.

5. Mortgage Protection Insurance

Mortgage protection insurance is mandatory in Ireland and ensures that your mortgage will be paid off if you pass away during its term. Costs vary based on age, health, and lifestyle but typically start at around €10 per month.

6. Home Insurance

Lenders also require home insurance to protect against risks like fire or damage. Annual premiums generally start at around €280 to €350, but it’s important to shop around for competitive rates.

7. Miscellaneous Costs

Additional smaller costs include:

  • Commissioner for Oaths fees: €15–€20 for swearing documents.
  • Postage and administrative charges: Approximately €50.
  • Local Property Tax (LPT): Paid annually based on property value; for example, a home worth €350,000 incurs an LPT of about €315 per year.

Summary

When budgeting for a home purchase in Ireland, it’s crucial to account for these additional costs:

  • Stamp Duty: 1%–2% of property price.
  • Legal Fees: €2,000–€4,000 (including outlays).
  • Valuation Fee: ~€150–€250.
  • Surveyor’s Report: ~€300–€500.
  • Insurance (Mortgage Protection & Home): ~€600+ annually.

By preparing for these expenses in advance, you’ll avoid financial surprises and ensure a smoother home-buying process. Always seek professional advice from solicitors and mortgage brokers to ensure all costs are accounted for.