The purchase price is just the beginning
Property prices in Ireland have risen sharply, particularly in Dublin and other urban centres. But when budgeting for an investment property, the listed price is only the starting point. Stamp duty, solicitor fees, surveys, and ongoing costs all add up — and they directly impact whether a property generates a genuine return or just ties up capital.
Understanding these costs upfront is the difference between an informed investment and an expensive surprise. Here is every cost you need to account for when buying property in Ireland.
Stamp Duty
Ireland applies Stamp Duty on residential property purchases using a progressive bracket system:
- 1% on the first €1,000,000
- 2% on the portion between €1,000,001 and €1,500,000
- 6% on any amount above €1,500,000
For commercial property, a flat rate of 7.5% applies.
On a typical residential investment property at €400,000, stamp duty is straightforward: 1% of the full amount = €4,000. For a higher-end property at €1,200,000, you would pay €10,000 on the first million plus €4,000 on the remaining €200,000, totalling €14,000.
The rates are relatively moderate compared to some European markets, but they still represent a meaningful upfront cost that needs to be factored into your return calculations.
Closing costs
Beyond stamp duty, these one-time costs apply at purchase:
- Solicitor/Conveyancing Fee: Legal representation for the purchase. Expect €2,000–€3,500 depending on the solicitor and complexity of the transaction.
- Land Registry Fee: Registration of your ownership with the Property Registration Authority. Fees are on a sliding scale based on property value.
- Property Survey/Valuation: A structural survey is not legally required but is strongly recommended, particularly for older Irish properties. Budget €300–€500.
- Property Searches: Title searches, planning searches, and other due diligence checks. Typically €200–€400.
- Mortgage Arrangement Fee: If financing, lenders may charge an arrangement or application fee. This varies by lender.
- Mortgage Valuation Fee: Lenders require an independent valuation, typically €150–€300.
Total closing costs (excluding stamp duty) typically come to €3,000–€5,000 for a standard residential purchase.
Ongoing costs
These are the annual costs of holding an investment property in Ireland:
- Local Property Tax (LPT): Based on the property’s market value and set by your local authority. A typical residential property incurs approximately €315 per year, though this varies significantly by valuation band and location.
- Home Insurance: Structural and landlord insurance typically costs around €500 per year.
- Maintenance: Budget approximately €3,500 per year for general upkeep, repairs, and compliance with rental standards regulations.
- Management Fees: For apartments, management company fees average around €2,500 per year. These cover common area maintenance, building insurance, and sinking fund contributions.
For a house, annual holding costs come to roughly €4,315. For an apartment, add the management fees for a total of approximately €6,815 per year.
Capital gains tax
Ireland applies a flat 33% Capital Gains Tax (CGT) on the profit from selling an investment property. This is one of the higher CGT rates in Europe.
There is a small annual exemption of €1,270 — the first €1,270 of gains in any tax year is exempt. Beyond that, 33% applies to the full gain.
Example: Buy at €400,000, sell at €550,000. The gain is €150,000. After the €1,270 exemption, taxable gain is €148,730. Tax owed: €49,081.
Primary residence exemption: If the property is your principal private residence for the entire period of ownership, the gain is fully exempt from CGT with no cap.
When selling, the seller pays an estate agent commission of 1.5% plus VAT at 23%, solicitor fees of approximately €1,500, and a mortgage discharge fee of around €100 if applicable.
What does this mean in practice?
For a €400,000 investment property in Ireland with a 20% deposit:
Upfront costs:
- Deposit: €80,000
- Stamp Duty: €4,000
- Closing costs: ~€4,000
- Total cash needed: ~€88,000
Annual holding costs:
- Local Property Tax: €315
- Insurance: €500
- Maintenance: €3,500
- Total: €4,315/year
Mortgage (€320,000 at 3.5% over 30 years):
- Monthly payment: approximately €1,437
To cover monthly costs (mortgage + holding costs at €360/month), you would need rent of at least €1,797 per month before accounting for vacancies, letting agent fees, or unexpected repairs.
Dublin yields have compressed in recent years, making the numbers tighter than they appear at first glance. Markets outside Dublin may offer better yields, but with less liquidity.
Run the numbers for your property
Use our Irish property ROI calculator to model the complete picture — stamp duty, mortgage costs, rental income, and projected appreciation over your hold period. For a fuller overview of the buying process, read our guide to buying property in Ireland.