Property advisor, Savills Ireland said that raising stamp duty on commercial property purchases from 6% to 7.5% was unhelpful in selling Ireland as a stable and predictable place to do business, particularly at a time of heightened economic uncertainty.
Savills noted that this was the second time in three budgets that commercial stamp duty was unexpectedly increased.
Savills also noted that, while this will be perceived as a business-to-business tax, households should be aware that it will reduce the value of the property assets in their pension funds.
Notes for Editors
- Data compiled by Savills show that, after today’s increase, Ireland has the third highest commercial stamp duty rate in the EU.
- The July 2019 Tax Strategy Group report on Stamp Duty quantified the value of a 1.5 percentage point increase in commercial stamp duty at approximately €140m per annum (p.31).
- The Tax Strategy Group says the 2017 commercial stamp duty hike aimed to divert capital from commercial development to residential. However Savills notes that Ireland also needs commercial property, and the vacancy rate in Dublin offices is now at its lowest for nearly 20 years.