First-Time Buyers Could Benefit from Proposed Stamp Duty Exemption in Budget 2027

Dublin: A proposal to abolish stamp duty for first-time homebuyers is being considered as part of discussions surrounding Ireland’s Budget 2027. If approved, the measure could provide thousands of euros in savings for young families and people living abroad who are seeking to purchase their first home.

However, no final decision has been made, and the proposal remains under consideration.

Stamp duty currently applies at a rate of 1 per cent on residential properties valued at up to €1 million. With the average house price in Ireland estimated at approximately €396,000, an exemption could save eligible first-time buyers around €4,000.

The government, however, is concerned that removing the tax could increase demand and contribute to higher house prices.

Budget discussions are also expected to consider additional support for housing initiatives, including the First Home Scheme, Help to Buy, Affordable Housing and Cost Rental programmes. An increase in the Rent Tax Credit and changes to grants for renovating vacant properties are also reportedly under consideration.

Details of any approved measures will be announced on Budget Day.

Childcare Costs a Key Budget Priority

Reducing childcare expenses is expected to be another major focus of Budget 2027, as high childcare fees continue to place financial pressure on families.

Taoiseach Micheál Martin has said the government intends to introduce significant changes to childcare support, with the long-term objective of gradually reducing the monthly costs paid by families.

Sinn Féin has repeatedly called for a mini-budget and one-off payments to help households cope with the cost-of-living crisis. The party has also supported the introduction of a universal energy credit.

However, Martin has indicated that the government does not support either a mini-budget or a universal energy credit.

The Taoiseach said one-off payments were being phased out and that the government was focusing instead on long-term measures designed to provide permanent relief. These include support for childcare and social protection.

The budget could nevertheless include targeted assistance for low-income households and families facing difficulties paying their energy bills.

Modest Income Tax Relief for Workers

Public Expenditure Minister Jack Chambers has said workers could benefit from modest changes to income tax bands and tax credits under Budget 2027.

The government is considering a tax package worth approximately €1.5 billion. Proposals reportedly include increasing the income threshold at which the 40 per cent rate of income tax applies, as well as raising tax credits.

Tánaiste and Finance Minister Simon Harris have said that putting more money into workers’ pockets will be among the government’s priorities.

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