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New Local Property Tax For Residential Properties
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.
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.