Property Tax in Ireland

Cosgrove Gaynard Solicitors

The one thing that is certain is that we will have to pay property tax in Ireland within the next 12 months.

Property Tax in Ireland

The one thing that is certain is that we will have to pay property tax in Ireland within the next 12 months.

The unknown is how this to going to be calculated, how much it will be, how it is going to be collected and what exemptions, if any, will apply. “ALL that has been decided, Minister for Finance Michael Noonan has stated, “is that there will be a property tax on family homes and that property tax will be collected by the Revenue Commissioners.”

Other countries have long ago brought in property taxes and it is interesting to note how they are charged:

EnglandThe property tax in England is paid by the dweller not the owner. They calculate the tax payable on the value of the property which is split into 8 tax bands.

FranceFrance has two taxes one for which the owner is liable, the other the occupant is liable for. Local authorities set the rates.

GermanyAgain the German property tax is paid by the occupier not the owner. A basic tax rate of 0.35% applies but it increases depending on the location of the property and the level of taxation required by the local authority.

How the tax is calculated is going to be the biggest issue facing the government. In an interview in the Irish Times Lucinda Creighton, Minister of State for European Affairs, argues that people living in Dublin and other cities should not be discriminated against and “punished for their address” when it comes to paying the value-based property tax. Square footage should be taken into account, along with ability to pay. Ms Creighton argued against a site valuation tax because “people living in houses where you literally cannot swing a cat in Dublin will be paying the bulk of property tax and I don’t think that’s fair”.

The exemptions to be provided, if any, is also being hotly debated. Those that have paid large amounts of stamp duty, many over 9%, in the last few years will feel justified in fighting for an exemption from what is a second property tax on their property. Other automatic exemptions may also apply to pensioners and social welfare recipients.

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