Irish cottages: holiday home tax due by end of September
Irish cottages: holiday home tax due by end of September
Owners of holiday homes in Ireland are being reminded of the need to pay a new tax on second properties. The tax came into effect this month and those who miss the payment deadline will incur monthly fines.
Investors with
cottages in Ireland have until the end of September to pay the tax, which stands at 200 euros per year. The tax is payable to the local authority for the area where the property is located.
However, it is feared that many second home owners are unaware of this new tax and the fast-approaching payment deadline. Karl Deeter of Irish Mortgage Brokers told the Irish Independent: "People may not be aware of this coming up and if they do not pay it, there is a monthly 10 per cent surcharge [20 euros per month] for failing to pay."
Taxes and fines left unpaid will accumulate. For example, anyone who fails to pay the tax for one year will be charged 240 euros in fines in addition to the original 200 euros. There is also the risk of a fine of up to 2,000 euros for failure to comply. Tax advisor Joe McCall told the paper that outstanding charges and late payment fees will be held against a property for up to 12 years, even if the home is sold.
Local authorities have been given the power to examine documents such as electricity bills to see if power is switched off during winter months, indicating the home is used as a summer residence. The electoral register and land registry records will also be checked to help determine how many people owe the tax.
The tax can be paid online at nppr.ie. It is expected to raise up to 40 million euros per year in additional funding for local authorities.
This story was brought to you by holiday
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