L.N 305 of 2025 on ‘Reduced Rate of Duty on Transfers Causa Mortis of a Dwelling House Rules’ (the “Rules”) has extended the amount on which a reduced rate of transfer duty applicable on transfers causa mortis of dwelling houses made on or after 28th October 2025 applies, subject to certain conditions, as set out highlighted below.
In terms of the Rules, where a dwelling house was:
- the ordinary residence of the deceased at the time of death; and
- is occupied at the time of the transfer by the transferee/s;
the transfer of the property causa mortis shall:
- be exempt from transfer duty on the first €35,000 of the value of the dwelling house;
- be subject to transfer duty at a reduced rate of 3.5% on the value between the first €35,000 up to a maximum of €400,000 of the dwelling house; and
- be subject to transfer duty at the default rate of 5% on the remaining value of the dwelling house which exceeds €400,000.
Furthermore, the Rules also provide that where a dwelling house which was not the ordinary residence of the deceased at the time of death but is the ordinary residence of the transferee/s, shall be subject to transfer duty at a reduced rate of 3.5% on the first €400,000 of the value of the dwelling house.
Where the property is inherited by more than 1 person, the above is to be applied on a pro-rate basis, calculated in accordance with the share of the property inherited.
Furthermore, if, at the time of death, the dwelling house was not fully owned by the deceased, the amounts of the value of said dwelling house which shall be subject to transfer duty at the reduced rate shall be proportionate to the share of the dwelling house which was owned by the deceased and thus transferred causa mortis.
This update has been prepared by the law firm’s Tax Team. For more information concerning any personal or corporate tax matter, please do not hesitate to contact the team on tax@fenechlaw.com
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