Buying a house in Ireland: 1% stamp duty, a 10% deposit, and only the contract makes it binding

Yes, you can buy a house in Ireland, and there is no restriction based on where you live: Citizens Information states explicitly that people who don't live there may buy too. The tax is modest, 1% stamp duty up to a million euros. The real framework is set by the Central Bank of Ireland: you need a deposit of at least 10%, and you borrow at most four times your gross income, or 3.5 times if you have bought a home before. The trap is the moment the purchase becomes binding. An accepted offer binds nobody; only the signed contract for sale does, and whoever pulls out after that may lose their deposit.

In your first year you don't buy. You rent, you get to know the area, and only then do you decide — why that order is fixed. This article is for the moment you are ready.

How much can you borrow?

The Central Bank sets two limits on every mortgage for a home. Lenders may go above them for a limited share of their loans per type of buyer, but count on the limit.

Measure	Who	Limit
Loan-to-income	first-time buyer	at most 4 times gross income
Loan-to-income	second or subsequent buyer	at most 3.5 times gross income
Loan-to-value	first-time and second buyers	at least a 10% deposit
Loan-to-value	buy-to-let	at least a 30% deposit
Room above the limit	first-time and second buyers	15% of a lender's loans

The Central Bank's own example: a couple with a combined €100,000 gross borrows at most €400,000 as first-time buyers, and at most €350,000 as second buyers. If you already owned a home in the Netherlands, ask the lender beforehand which group you fall into.

There is an exception for a bridging loan, when you buy the new home before your original principal home is sold: it falls outside the income limit, but the 10% deposit still applies.

Which scheme do you miss if you have bought before?

The Help to Buy scheme gives first-time buyers up to €30,000 back from Irish income tax paid, for a newly built home or a self-build. But whoever has ever bought or built a home before, alone or with someone else, doesn't qualify. The scheme also looks at the Irish tax you paid in the four years before your application; whoever has just arrived has little or nothing there.

When is the purchase binding?

Most homes are sold by private treaty: you negotiate the price with the seller or their estate agent. After an accepted offer the agent often asks for a booking deposit, a set amount or a small percentage of your offer. You get that amount back until you sign the contract for sale. The estate agent works for the seller, not for you.

Before you sign, three things should be done. Your solicitor has checked the contract and the title documents. You have formal mortgage approval, not just approval in principle: whoever signs without an approved mortgage can lose their deposit. And you have had the property surveyed, because a seller doesn't have to tell you about defects.

Moment	What happens	What you risk
Offer accepted	booking deposit to the estate agent	nothing; refundable until the contract
Contract signed	deposit, the balance on the completion date in the contract	your deposit, if you pull out
Completion	the solicitor pays, you get keys and documents	—
Registration	the deed to Tailte Éireann	nothing; you are already the owner

At an auction it is shorter: the highest bidder pays the deposit at once and signs on the spot. So the survey and the mortgage must be done before the auction.

Which costs come on top?

Stamp duty is 1% up to €1 million, 2% on the portion up to €1.5 million and 6% above that. On a new build with VAT you only pay it on the price excluding VAT. Your solicitor calculates the amount, asks you for it before completion and pays it to Revenue.

On top of that you pay your solicitor, with no fixed rate and with VAT added, plus the costs of searches and registration. The lender may charge for the application and its valuation. The lender requires mortgage protection insurance, although you don't have to take it out with them. And if you buy an apartment in a development, you become a member of the management company and pay annual management fees.

Look at the Local Property Tax before you sign. That annual tax applies to every home in Ireland, depends on the value and is due on 1 November. Depending on your purchase date you pay part of the current year. Have your solicitor check whether there are arrears on the property.

What does the energy rating say?

Every home for sale must have a Building Energy Rating (BER). Read it: the more efficient the home, the lower your energy bill, and a poor rating means you have to budget for insulation and renovation. Citizens Information also advises checking whether the home is in a high radon area, and whether it has been tested.

How the purchase fits into your journey is shown at /ierland.

In Vertrekklaar this is phase 4 of 5 of the journey, step 4.1: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Ireland or go straight to step 4.1 in the open plan.