Niall Collins (Limerick County, Fianna Fail)
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132. To ask the Minister for Finance if a query by a person (details supplied) in relation to the 10% rate of stamp duty will be clarified; and if he will make a statement on the matter. [28882/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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In response to the query of the Deputy, I can confirm that if the person/entity buying the houses accumulates 10 or more houses in any 12 month period, whether they comprise new or existing housing stock, and irrespective of whether they are in the same location or not, the new higher stamp duty rate of 10% will apply.

Where a person/entity is buying on a unit by unit basis the payment of the higher stamp will be triggered on the 10^thpurchase. Once triggered, the 10% rate will also apply to any other residential properties acquired in that 12 month period i.e. the other 9 in this example.

This 10% rate is intended to provide a significant disincentive to the multiple purchase of residential units in the Irish property market and I believe when combined with longer term planning permission changes should result in a greater availability of houses for those wishing to purchase a family home for owner occupier purposes.

You should note that acquisitions by Local Authorities and approved housing bodies are already exempt from stamp duty, and this exemption will continue to apply as regards this new higher rate.

I have also provided a specific exemption from this higher stamp duty rate for the multiple purchase of apartments. The rationale for this is that a key objective of this proposal is to achieve a balance between addressing the issue of multiple purchases by institutional investors, whilst at the same time ensuring the supply of financing is not undermined, particularly for the construction of new apartment developments.

Without this exemption, it is felt that there would be a significant risk that developers would exit from the apartment building market as such projects would no longer be viable, and, if that were to happen, an important element of our housing strategy would be lost.

It is intended that the changes provided for in the Financial Resolution will be provided for in formal legislation in the next couple of months.