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Generic Tax Name Tax on real estate - Local property tax
Tax name in the national language Cáin Mhaoine Áitiúil
Tax name in English Local property tax
Member State IE-Ireland
Tax in force since 2013/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Finance (Local Property Tax) Act 2012, as amended by Finance (Local Property Tax) (Amendment) Act 2013

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments
 
Geographical Scope

Republic of Ireland

 
Taxpayers

The following persons are liable to pay the Local Property Tax. These are known as "liable persons":

  • Owners of Irish residential property, regardless of whether they live in Ireland or not.
  • Local authorities or social housing organisations that own and provide social housing.
  • Lessees who hold long-term leases of residential property (for 20 years or more).
  • Holders of a life-interest in a residential property.
  • Persons with a long-term right of residence (for life or for 20 years or more) that entitles them to exclude any other person from the property.
  • Landlords where the property is rented under a short-term lease (for less than 20 years).
  • Personal representatives for a deceased owner (e.g. executor/administrator of an estate).
  • Trustees, where a property is held in a trust.
  • Where none of the above categories of liable person applies, the person who occupies the property on a rent-free basis and without challenge to that occupation.
 
Tax object and basis of assessment

The Local Property Tax is an annual tax applying to residential properties. The amount of tax is calculated based on the market value of the residential property on the valuation date. Property values are organised into market value bands. Market value is determined on a self-assessment basis.

 
Deductions, Allowances, Credits, Exemptions

Certain properties will be exempt from LPT.

  • New and previously unused properties that are purchased from a builder or developer between 1 January 2013 and 31 October 2016 will be exempt until the end of 2016.
  • Properties purchased between 1 January 2013 and 31 December 2013 will be exempt until the end of 2016. The exemption is subject to certain conditions, including that the property must be the person’s sole or main residence. If the property is subsequently sold or ceases to be the person’s main residence between 2013 and 2016, the exemption no longer applies.
  • Properties constructed and owned by a builder or developer that remain unsold and have not yet been used as a residence.
  • Properties in unfinished housing estates, as specified by the Minister for the Environment, Community and Local Government
  • Residential properties owned by a charity or a public body and used to provide accommodation and support for people who have a particular need in addition to a general housing need to enable them to live in the community such as sheltered accommodation for the elderly or the disabled. A "charity" must be granted an exemption for tax purposes by the Revenue Commissioners to avail of this exemption.
  • Registered Nursing Homes.
  • A property previously occupied by a person as his or her sole or main residence that has been vacated by the person for 12 months or more due to long term mental or physical infirmity. An exemption may also be obtained where the period is less than 12 months, if a doctor is satisfied that the person is unlikely at any stage to return to the property. In both cases, the exemption only applies where the property is not occupied by any other person.
  • Mobile homes, vehicles or vessels.
  • Properties fully subject to commercial rates.
  • Diplomatic properties.
  • Residential properties that have been certified as having significant pyritic damage. In these cases the properties will be exempt for a temporary period of approximately three years.
  • Properties used by charitable bodies as residential accommodation in connection with recreational activities that are an integral part of the body’s charitable purpose, e.g. guiding and scouting activities.
  • A residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence.

A system of deferral arrangements is available where there is an inability to pay and certain specified conditions are met, whereby a person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral, 100% of the liability can be deferred. Where a person qualifies for partial deferral, 50% of the liability can be deferred and the balance of 50% of the tax must be paid.

There are four separate categories of deferral of LPT available, Income Threshold, Personal Representative of a Deceased Person, Personal Insolvency and Hardship Grounds.

An interest charge of 4% per annum applies for the period over which payment is deferred. The deferred tax remains a charge on the property and has to be paid to Revenue when the property is sold or transferred to another person.

 
Rate(s) Structure

The tax liability is calculated by applying the tax rate to the mid-point of the property value band. The rate of LPT is 0.18% for properties up to a market value of €1m. Residential properties valued over €1m are assessed at the actual value at 0.18% on the first €1m in value and 0.25% on the portion of the value above €1m (no banding applies for properties valued over €1m).

 
Tax due date

The payment date for 2013 was 1 July 2013. The payment date is 1 January for each subsequent year.

However, payments may be spread evenly throughout the year.

 
Tax collector

Revenue Commissioners

 
Special features
 
Economic function







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Environmental taxes



Comments
 
Tax revenue
ESA95 code d

Comments

€76m of the Revenue in 2013 represented pre-payments of liabilities for 2014.