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New Local Property Tax For Residential Properties

10 Apr 2013
As of this year an annual self-assessed Local Property Tax will be charged in Ireland on the chargeable value of residential properties, subject to certain exemptions. Taxand Ireland examines the application of the new Local Property Tax.

Local Property Tax is a self-assessed tax requiring property owners to honestly assess the market value of their own property.

This Local Property Tax will apply:

  • Where the chargeable value does not exceed EUR1,000,000, the rate will be 0.18%. Chargeable values under EUR1,000,000 are organised into bands with the tax applied on the mid-point of the relevant valuation band.
  • Where the chargeable value exceeds EUR1,000,000, the rate will be:
    • 0.18% for that part of the chargeable value of the property which does not exceed EUR1,000,000
    • 0.25% for that part of the chargeable value of the property which does exceed EUR1,000,000

Revenue has published a valuation guide which provides indicative chargeable values and are also issuing estimates to property owners.

Your Taxand contact for further queries is:
Martin Phelan
T. +353 1 639 5139

Taxand's Take

Revenue has indicated that they will challenge cases where deliberate under-valuation occurred and penalties apply in such circumstances, therefore taxpayers should ensure they are compliant. There is a requirement for any Local Property Tax, penalties and accrued interest to be paid before the completion of a sale. Unpaid amounts will be a charge on the property to which it relates.

Taxand's Take Author

Martin Phelan
Taxand Board member