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.