Purchasing a house in Ireland involves several costs beyond the price of the property itself. These include legal and administrative fees which are mandatory parts of the transaction process. If you are currently considering buying a house in Ireland, either from within or outside the country, the following information will help you to ascertain a full picture of the legal fees and costs.

What is stamp duty and how much will it cost?

Stamp duty is a tax you pay on the documentation used to transfer property. At the time of writing, stamp duty on residential property up to €1 million is 1%. For residential property over €1 million, the rate is 2% on the excess (so, for example, on a house costing €1.5 million the stamp duty would be €20,000). These rates are subject to change, so be sure to check the Irish Tax and Customs website for the latest documentation of rates.

What are conveyancing fees and how much will they cost?

Conveyancing is the legal process of transferring property from one owner to another. This process is typically handled by a solicitor. Conveyancing fees in Ireland generally include both the solicitor’s time and any additional costs such as title searches. Costs vary depending on the property and its location, so it’s advisable to seek quotes from reputable providers. Some solicitors may charge a percentage fee of the property, so be sure to check and be clear about what their full fees are and if there are any hidden charges.

At McCarthy + Co, our conveyancing solicitors assist buyers and sellers from across the country, ensuring you get everything over the line successfully and on time, with a minimum of hassle and no drama. For a transparent quote with no hidden costs, simply complete our conveyancing quote form here.

What are Land Registry fees and how much will they cost?

The Land Registry, or Property Registration Authority, is responsible for registering property ownership in Ireland. The fees charged by the Land Registry depend on the price of the property. At the time of writing, the fee for properties up to the value of €50,000 is €400, for properties between €50,001 and €200,000 the fee is €600, and between €201,000 and €400,000 the fee is €700. For properties over €400,000, the fee is €800. These fees are subject to change so always check the latest information on the Property Registration Authority website.

What is a Lender’s Valuation fee and how much does it cost?

A lender’s valuation fee is charged by the mortgage provider to cover the cost of assessing the value of the property. This ensures that the property is worth at least the loan amount. This fee generally ranges from €150 to €250.

Will I have to pay VAT on a house purchase?

Value Added Tax (VAT) is not payable on second-hand residential properties in Ireland. However, VAT at 13.5% does apply to new properties sold by the builder or developer within five years of completion.

Are there any other costs I need to consider when purchasing a property in Ireland?

Yes, several other costs should be considered when purchasing a property in Ireland:

• Surveyor’s Fee – Before purchasing a property, it’s recommended to get a structural survey, especially if the property is old. A surveyor’s fee typically ranges from €500 to €1000.
• Mortgage Protection Insurance – This is a life insurance policy that clears your mortgage if you die before it’s paid off. Costs vary based on age, health, mortgage size, and term.
• Home Insurance – You are not obliged by law to insure your home but if you need to secure a mortgage then most lenders will insist that you have it.
• Moving Costs – This can vary widely based on how much stuff you have and how far you’re moving. If you are planning on moving to Ireland from overseas you will need to seek quotes from a company offering international removal services, such as this one here.

Remember, every property purchase is unique, so costs will vary from case to case. It is advisable to plan ahead and budget for these potential expenses, so you are not caught off guard by the total cost associated with buying the property you have in mind. Some of the ongoing expenses associated with purchasing a house include:

• Renovation and Repair Costs – If the property requires immediate work or upgrades, those costs should be factored in with the legal fees and other costs.
• Utility Set-Up – Depending on the service providers, there may be setup or connection charges for utilities such as gas, electricity, and broadband.
• Local Property Tax – If you own residential property on 1 November, including rental property, you must pay Local Property Tax (LPT). This date is referred to as the liability date. Visit the Citizen’s Information website for the latest information on basic rates.

Contact our conveyancing team for further assistance

As daunting as all these costs may seem, remember they are part and parcel of the home-buying process. With careful planning and budgeting, you can navigate through this process and step into your dream home with confidence. And while it might be tempting to save money by skipping some steps, each one plays a vital role in ensuring that the property you buy is a sound investment.

If you have any questions at all about any of the costs involved in buying or selling your home, our conveyancing team would be more than happy to assist you. Call us on 1800 390 555 and we will connect you to a professional within our team. You can also email info@mccarthy.ie and we will get back to you as soon as we can.