Fourfold Increase in
Second Home Property Tax Take
In the emergency budget of October 2008, the Minster for Finance introduced a tax on second homes. The residential properties that are liable for the charge are private rented properties, vacant properties (except new but unsold residences, which have never been used as a dwelling and are part of a trading stock of a business) and holiday homes. The payment is to be made to each local authority within whose boundaries rental properties and holiday homes lie.
Properties excluded from this new tax include houses owned by registered charities and properties designated as heritage buildings. The payment is to be made to each local authority within whose boundaries rental properties and holiday homes lie.
Properties excluded from this new tax include houses owned by registered charities and properties designated as heritage buildings.
In theory, if a property owner deemed liable for the new charge fails to pay it, the local authority may pursue them through the court to obtain payment of both the original property charge and any fines accruing.
People living in their main residence are not liable for the property charge, nor are they liable if they receive rental income for one room in their main residence. However if a property owner rents out the entire house, then they will be liable for the entire charge.
Other exemptions from the new act apply to rooms in a main residence, or within two kilometers of a main residence which is occupied free of rent by a relative of the property owner, i.e. a granny flat.
The new property charge only covers second properties located in Ireland and overseas properties are exempt.
In the first two week collection period of 2010, local authorities have received 2.2 million euro from second home owners. The amount of tax paid was almost four times more than the tax take from the same time period in 2009.
In 2009, the liability date was September 31st. This year it is March 31st and second home owners will face a late payment fee of 20 euros for each month delay in paying the tax.
This article is only intended as a general guide. You should consult the relevant websites for more information and the exact terms and conditions involved.
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