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Stamp duty will no longer be charged when investing in Irish companies listed on the Enterprise Securities Market

  • Ireland
  • General

18-05-2017

The Irish Stock Exchange (“ISE”) announced on 17 May 2017 an end to the stamp duty regime, which presently arise when shares are purchased in Irish companies listed on the ISE’s Enterprise Securities Market ("ESM"), will come into effect from 5 June 2017. This exemption will benefit customers trading in the ESM because they will be exempt from stamp duty in respect of both their on-exchange and over-the-counter (“OTC”) transactions.

Practical Implications

This stamp duty exemption will:

  • make public equity markets more accessible for companies when they are trying to attract Irish and international investment;
  • decreases the cost of capital for companies; and  
  • create a better environment for company expansion, job creation and growing the Irish economy.

This stamp duty exemption will place Irish companies quoted on the ISE’s ESM on a level playing field with their international peers when they are competing for Irish and international investment, and is a necessary measure in the context of Brexit.

MSM’s

However, stamp duty will continue to apply when investing in Irish companies listed on the ISE’s Main Securities Market (“MSM”), the ISE has indicated that it is currently lobbying the Government to abolish stamp duty for MSM’s, therefore, it should make it easier for MSM’s to access investment and scale-up their business.  Across Europe there has been a move to exempt these investment companies from stamp duty France exempts listed companies with a market capitalisation of €1bn.

Further Questions

If you have any further queries about this, please contact Gerard Ryan, Partner & Head of Corporate and Commercial, Eversheds Sutherland.

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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