Vacant Homes Tax
The Vacant Homes Tax (VHT) was introduced in 2023 and is aimed at properties that are left vacant for long periods, with the hope of encouraging owners to either rent out or sell their unused properties.
WHAT PROPERTIES ARE LIABLE FOR VHT
It applies to properties that are suitable for living in but have been lived in for less than 30 days in a year and includes holiday homes or vacant farmhouses.
If you own a holiday home in Ireland, you may fall within the scope of VHT if the property is lived in for less than 30 days a year. Holiday homeowners should keep records of when the property was in use and retain documents such as electricity bills, travel records, restaurant receipts etc., as proof that the property was occupied. These records should be retained for six years.
If you have an unused farmhouse on your property, it may be deemed a vacant property by Revenue for VHT purposes. If Local Property Tax (LPT) is payable on the property, then the property will likely fall within the scope of VHT.
If you rent the property to your spouse, partner, or certain relatives you may still be liable for this tax.
A register of vacant homes is being established by Revenue and will be continually updated as necessary.
WHAT PROPERTIES ARE EXEMPT FROM VHT
Certain properties, like derelict house or those unsuitable for living, are exempt. You can also claim an exemption if your property is empty due to illness or death, if for sale or rent, under a Court Order, or undergoing certain types of repairs or renovations.
For the period 1 November 2022 to 31 October 2023 the amount of VHT is three times the basic Local Property Tax (LPT) for the property’s valuation band. For example, if your property’s LPT rate is €103.00, you pay €309.00 annually (€103 x 3). For the chargeable period 1 November 2023 to 31 October 2024 the rate of VHT is five times the basic rate of Local Property Tax payable. From the 1st November 2024 the VHT rate will be increased from 5 times to 7 times the existing LPT rate of a relevant property.
HOW DO I FILE AND PAY VHT
You can file and pay through Revenue’s Vacant Homes Tax portal, similarly to LPT. The first due date was November 7th, 2023, and the first payment should have been paid by January 1st 2024. The legislation provides for penalties, interest, and similar to LPT, a late filing surcharge in cases of non-compliance.
