€ 100 Property Tax in 2012.
€ 250 (or more) by 2014?

As part of the bailout agreement between Ireland and the EU/IMF, the Irish government promised to introduce a phased property tax scheme, starting in 2012 with a flat rate tax and with a property valuation based tax implemented by 2014.

The phased introduction is intended to provide time for a standardised property valation scheme to be set up. This should provide data for an equitable system of taxation from 2014 onwards, probably based on valuation bands.




Currently, data protection laws forbid estate agents from disclosing house selling prices without the consent of the owner. By June 2012, the establishment of the Property Services Regulatory Authority (PRSA) should allow greater transparency in relation to actual selling prices achieved from private property sales across Ireland, going back over the last two years.

A flat rate tax of € 100 will be imposed for 2012 (applicable to all households with the exception of social housing, properties where commercial rates apply, households in receipt of mortgage interest supplement and certain unfinished "ghost" housing estates).

This amount of €100 will be due to be paid by April 2012, with a € 10 late payment fee for each month that the tax remains unpaid. As a concession to what is sure to be a very unpopular tax, the government has allowed the amount due to be spread over the year in 4 direct debit payments and has also promised that special consideration will be given for households in mortgage distress.

In 2014, with a property valuation system in place, the tax will increase from the flat rate of € 100 to an estimated average tax of € 225 per household. Details of the exact nature of the estimation of the tax are still being finalised, but valuation bands may be imposed, with some households possibly facing a tax of around
€ 600 per year at the top end of the valuation scale.

The tax system may follow the recommendations of the 2009 Commission on Taxation report, which proposed eight valuation bands, with charges starting at € 188 and increasing to around € 3,000 for the most expensive properties.

This summary is based on recent articles in the Irish Times and Irish Independent Newspapers.

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