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The research was prepared in September, after Taoiseach Simon Harris wrote to the Department of Finance. Alamy Stock Photo

Government warned stamp duty increases on bulk home purchases could 'harm investment'

The Department of Finance paper said that while the state was providing an “unprecedented level of funding” for housing, it was still not enough to meet targets.

A DEPARTMENT OF Finance research paper warned the government needed to be cautious about increasing the rate of stamp duty that applied for the bulk purchase of homes.

Research by officials said a plan to hike the 10 percent rate that applied for the purchase of more than ten homes could drive out international investment that was needed to make property development viable.

It said that while the state was providing an “unprecedented level of funding” into housing, it still would not be enough by itself to meet Ireland’s ambitious housing targets.

The paper said private investment was especially important “at development stage to ensure the provision of social, affordable and private homes.”

It said if policy and rental regulation policy was constantly changing, international investment would be put off by “uncertainty and increases [in] risk profile.”

The paper added: “The mislabelling of institutional capital with the pejorative ‘vulture funds’ is also seen as a further deterrent for institutional investment.”

The research was prepared in September after Taoiseach Simon Harris wrote to the Department of Finance last May looking for a review of stamp duty on bulk purchases.

Mr Harris said figures had shown the number of houses subject to the 10 percent stamp duty rate had risen from 181 to 623 in 2023.

He wrote: “I believe we need to take further action, but we need to base that on good information.”

In the research carried out, officials estimated that the higher rate had applied to around 1 percent of residential property transactions in 2023.

They said this equated to 3 percent of sales of new homes completed that year with €44 million collected in tax by Revenue over a twelve-month period.

It said separate analysis had shown that while institutional investors were buying up property, they were actually “net sellers” in terms of putting houses and apartments back on the market.

The paper said there were arguments for and against change with bulk purchases making up a low percentage of sales.

However, there were also concerns about businesses buying up properties for “housing staff” with officials saying a higher rate might be needed to avoid that.

The paper added: “Further interventions aimed at investors, including international investors, could reinforce a perception that Ireland is not supportive of private investment in property.

“This in turn could indirectly dissuade international developers from investing in Ireland, investment which is needed if we are to achieve the current housing targets.”
In a submission for Finance Minister Jack Chambers ahead of Budget 2025, department officials put forward four options for stamp duty.

It said ‘trigger points’ could be introduced with a sliding scale of higher rates if for example an investor bought twenty or more houses.

There was a suggestion as well of reducing the threshold from ten houses to eight or extending the period for counting bulk purchases from one year to eighteen months.
Officials also explained how setting a new rate of 15 percent could be applied which would yield an extra €11.1 million if there was no “behavioural change” by institutional investors.

That was the option chosen by Minister Chambers in Budget 2025 along with an increase in stamp duty to 6 percent for properties worth over €1.5 million, or the so-called ‘mansion tax.’

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    Mute Nigel Baldock
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    Nov 27th 2024, 5:30 PM

    No wonder Teesh Simon is a fan.

    165
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    Mute Toca Stories
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    Nov 27th 2024, 5:25 PM

    So to highlight disinformation they have spread disinformation…..bit ironic no

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    Mute NotMyIreland
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    Nov 27th 2024, 5:36 PM

    @Toca Stories: no….they deleted them before they went out??

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    Mute Jerry LeFrog
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    Nov 27th 2024, 5:39 PM

    @NotMyIreland: yes they did. It’s part of their MO

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    Mute Éamonn O'Kane
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    Nov 27th 2024, 5:47 PM

    @Toca Stories: the ads were never aired. Try reading the article before commenting.

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    Mute Lonely Are the Brave.
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    Nov 27th 2024, 5:54 PM

    Simon for tae shocked

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    Mute Michale Kane
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    Nov 27th 2024, 5:32 PM

    Tick-Tock Taoiseach spreads a fair bit himself..

    And btw Journal.. look at the Trump/FG trolls in the comments for last few weeks before throwing any stones at others.

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    Mute Tom Newell
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    Nov 27th 2024, 5:56 PM

    yet our elected numb nuts in the dail continue to use it……ironic

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    Mute Daniel Skelton
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    Nov 27th 2024, 5:25 PM

    TikToxic just needs to disappear. It’s cancer of the internet.

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    Mute Andrew Giles
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    Nov 27th 2024, 6:30 PM

    @Daniel Skelton: a bit like the comments section here, notice how only a select few articles can be commented on now.

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    Mute Daniel Skelton
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    Nov 27th 2024, 11:09 PM

    @Andrew Giles: The Journal (of Censorship)

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    Mute offside again
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    Nov 27th 2024, 5:34 PM

    Wow ! Disinformation ! Is this a new word for bullshiting ?

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    Mute Andrew Kenny
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    Nov 27th 2024, 5:28 PM

    The advent of social media in general has ruined the minds of people. It’s a toxicity, a cesspit, a breeding ground for hatred and false realities. It’s addictive nature is, in particular, destroying younger minds. 20 years from now, our species will be the dumbest It’s been as a result.

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    Mute Regular John
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    Nov 27th 2024, 5:36 PM

    @Andrew Kenny:
    Sure we can just identify as another species, I’m gonna be a fish.

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    Mute Andrew Kenny
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    Nov 27th 2024, 5:39 PM

    @Regular John: I might be a cat myself. Lol.

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    Mute Oh Mammy
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    Nov 27th 2024, 5:30 PM

    If the posts ” “should have been immediately clear to any human reviewer” that these statements were false.”, why would it not be immediately clear to any human reader that they are false?

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    Mute Jerry LeFrog
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    Nov 27th 2024, 5:44 PM

    @Oh Mammy: I guess some people would not have seen them as false, because they would have comforted them in a narrative they already espouse (these people can be called, according to your own sensibilities, “woke”, “far-right”, “conspiracy theorists”, etc. Everybody has a go at someone else these days)

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    Mute Oh Mammy
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    Nov 27th 2024, 5:47 PM

    @Jerry LeFrog: are you suggesting this condition does not apply to human reviewers?

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    Mute Jerry LeFrog
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    Nov 27th 2024, 7:08 PM

    @Oh Mammy: I said “some”. I’m sure though that the vast majority of humans would be able to realize those were fake ads. At least 90%. I just have doubts for a small minority who don’t seem to think for themselves, and these pose a greater danger to the rest of us

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    Mute Gearoid MacEachaidh
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    Nov 27th 2024, 7:26 PM

    @Oh Mammy: most first line moderation is done electronically. It usually only goes to a human if it’s flagged. Use the right words to avoid the flags and most posts will go live unless they’re reported. Then you have Facebook and X that allow misinformation and worse whether it’s flagged or not.

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    Mute Alex
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    Nov 27th 2024, 9:17 PM

    @Oh Mammy: Completely clueless aren’t you ? Do you really think “humans” review hundred of thousands of video every day?

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    Mute Oh Mammy
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    Nov 28th 2024, 4:05 AM

    @Alex: reading comprehension is not your thing, is it?

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    Mute Nestor
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    Nov 27th 2024, 9:41 PM

    This is nonsense from this crowd.

    Those advertismenets were not disinformation.
    They were just silly.

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    Mute Chris
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    Nov 27th 2024, 6:00 PM

    Tik Tok just created a shocking election last Sunday in Romania, as a nobody WON the first round of presidential elections due to farms of bots and heavy influenced Tik Tok reels. Scary stuff. Read about Calin Georgescu, who had the 7th or 8th chance to win and he… won.

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    Mute thomas molloy
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    Nov 27th 2024, 6:26 PM

    How about Irish election misinformation when the camera conscious woman says “I don’t care” and Harris is accused of ending the conversation.

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    Mute Alex
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    Nov 27th 2024, 9:15 PM

    Chinese tr4sh, what do you expect. It should be banned.

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