Holiday Lettings news - Tax changes for owners of holiday homes in Ireland

Tax changes for owners of holiday homes in Ireland

Second home owners in Ireland are to be affected by a new annual property tax from next year. Capital Gains Tax for second homes is also being increased.

Announced in Ireland's budget, the new annual property tax for holiday homes in Ireland could generate €80m per year for local authorities, according to The Irish Times.

Owners of holiday homes, second homes and investment properties in Ireland will have to pay €200 for each additional property they own.

The additional income will be used to compensate the authorities for a €25m reduction in exchequer funding in 2009. The €200 property tax will go into a central fund, rather than directly to the local authority where the property is located.

As well as the new property tax, owners of such properties will also face a two per cent increase in capital gains tax when selling their property, writes The Independent. From 2009, this will stand at 22 per cent on the profits of the sale of non-principal private residences.

There are approximately 200,000 second homes in Ireland, 50,000 of which are listed as holiday homes, according to the country's Central Statistics Office (CSO). A further 200,000 people own buy-to-let properties in Ireland.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.

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