Taxes in Europe Database v2
Finance (Local Property Tax) Act 2012, as amended by Finance (Local Property Tax) (Amendment) Act 2013
Republic of Ireland
The following persons are liable to pay the Local Property Tax. These are known as "liable persons":
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.
Certain properties will be exempt from LPT.
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.
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).
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.
€76m of the Revenue in 2013 represented pre-payments of liabilities for 2014.