A new tax on rents over €2,500

This year a new tax bill in Dublin was introduced that has not been welcome amongst the public. As we see rents rapidly increasing in Dublin, a 1 percent stamp duty on rents over €2,500 becomes ever more pertinent than before.

 

This 1 percent duty was initially set at around €1,500 month. It was then raised to €2,500 after the financial crisis to help relieve some of the pressure on tenants.

 

However, it has now came to that level where a more massive amount of people are hitting this 2,500 a month target.

 

With housing rates increasing rapidly, an analysis by Goodbody Stockbrokers claimed around 55 percent of three-bedroom Dublin homes are above this 2,500 level on the Daft.ie. A third of all these properties are in the same area.

 

What does this mean for many families?

On top of rent, families will now have to pay 300 or more a year to cover this tax.

 

With this tax not being well-known amongst the public and is not supposed to affect a lot of people, Philip O’Sullivan, an economist with Investec, said the policymakers might look at revising it.

Coming from the Minister of Finance, Paschal Donohoe, the duty raised about 150,000 in 2016 with a total of 238 people liable for the tax. It was up 90,000 from the previous year.

 

As this tax becomes more well-known amongst the public, we might see this tax either revised or terminated.

In reference to Tenants paying more than €2,500 monthly face 1% stamp duty bill by Joe Brennan on 14 July 2017 in the Irish Times.

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