Owners of Ireland cottages face holiday home tax
Owners of Ireland cottages face holiday home tax
A new tax on holiday homes in Ireland is set to be passed next month. The 200 euros tax will be levied on non principal private residences.
Up to 200,000 second homes, rental properties and
cottages in Ireland will be subject to the new tax, estimates The Irish Times. The legislation was first announced in Ireland's budget last October and is due to be introduced in July.
The tax will be collected by the local authority where the property is based rather than by the central Irish government. It is thought that 40 million euros will be generated for county and city councils each year as a result.
Owners will be liable to pay the tax for any property that is not their main home. Therefore, someone with three additional properties will pay 600 euros per year.
The onus will be on owners to declare any additional homes and rental properties. Those who buy a second home with the intention of making it their principal residence will be exempt provided they sell the original property within six months.
The Irish Property Owners' Association claims the tax is unfair and is planning to challenge the new legislation. The Irish government has defended the move, describing it as "a significant broadening of the revenue base of local authorities".
The tax could be introduced on July 8. Local authorities are expected to set up a website where property owners will have a choice of payment methods.
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