Ireland: tax on Non Principal Private Residences
Since October 2008, local authorities in the Republic of Ireland have charged a tax on second homes. The main points to be aware of are:
The tax is directly payable to local authorities by owners of Non Principal Private Residences (NPPR), which include holiday homes. The programme is administered by the Department of the Environment, Community and Local Government. The annual €200 tax is payable to local authorities according to the property’s location and helps fund services directly.
The tax, known as the NPPR charge, is explained in full on their website and this should be the first port of call for those seeking to register their property. You will be assigned an Account Reference Code and PIN to update your details. You can make payment online or at your local council office. However, if you opt for the latter, you'll be subject to a €10 handling fee.
Owners whose properties are leased to tenants under the local authority’s Rental Accommodation Scheme are exempt from this tax. The charge is not applicable to “granny” annexes let to family members rent-free, nor to mobile homes.
Deadline for payment is normally set in June, when owners must declare the ownership and status of their property as of March that same year. The online payment facility at nppr.ie encourages owners to make a timely payment and avoid a monthly late payment surcharge of 10 per cent. No payment reminders are sent so it is important to be prompt with payment.
Late fines amount to €20 per month. An owner who misses their annual payment will owe €200 for their current year, plus an accumulated €240 in fines if failing to pay within 12 months, leading to a total of €440. Serial defaulters will incur a fine of €2000. Local authorities are able to determine energy usage and the records of the Private Residential Tenancies Board to help identify properties eligible to pay the tax.
Additionally, since January 2012, a new Household Charge has been introduced. Owners of residential properties in Ireland who are liable for NPPR are also subject to this tax. The Household Charge is set to be an interim measure before a more comprehensive, valuation-based property tax is introduced. You can find out more details and register your property by visiting www.householdcharge.ie.
A full list of frequently asked questions can be accessed at the NPPR site’s FAQ page.
Author: Nick, renewals team
Date: November 2011