Local Property Taxes Reappear in the Republic of Ireland

16 Apr

Local property taxes have now returned to the Republic of Ireland but figures show homeowners will still be paying considerably less than their neighbors north of the border. 

Compared to the price of local property taxes in the Republic of Ireland, Northern Ireland homeowners are paying over four times more in domestic rates.  

The rate charged in Northern Ireland depends on which of the 26 District Council areas residences live in.  The average housing rate in Northern Ireland is 0.73 per cent.  

The domestic rate charged to citizens of Belfast is 0.70 per cent on the value of their home, while residences of the council of Derry pay 0.81 per cent.

In the Republic of Ireland the amount taxed will vary depending on how much a person’s home is worth.  The tax will be charged at 0.18 per cent of the value of the property up to the first € 1 million.  If the home is worth more than € 1 million then the rate will increase to 0.25 per cent.  

A reported 1.9 million homeowners will be affected.  Beginning in March 2013 letters administered by the Revenue in the Republic of Ireland will be sent out detailing the new tax.   

Around 90 percent of Irish homes are estimated to be worth less than €300,000.  Meaning the tax liability for most people will be near €50 a month or less –4 times better than that of their northern neighbors. 

At this rate the Government should raise €500 million a year from the new tax that can be used towards economic recovery. 

Residents will be given until May 7th to return their own valuation of the estimated value of their home to replace that of the Revenue Commissioner’s estimate.  Those who received the paperwork electronically will be given until May 28th.   

Many in the Republic of Ireland are outraged about the new tax and fear they won’t be able to afford to pay.  Tax exemptions have been established but are few and can only be applied for under specific circumstances. 

A few include:   

  • Newly constructed properties that remain unoccupied and unsold
  • Mobile homes
  • Houses in certain ghost estates
  • Properties used by charities, once they are used for recreational purposes
  • Homes adapted for use by people with disabilities, if the property was grant-aided by the local authority
  • Second hand properties purchased by first time buyers (until the end of 2016)

 The new property tax will be strictly policed.  For those who refuse to pay, the Revenue has many forms of obtaining the money, including deducting it from homeowners’ wages and pensions. 



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