VACANT HOMES

All residential property owners should prioritize their responsibilities when it comes to the vacant dwellings tax.

Introduction

Owners, investors, and developers of residential property are subject to the vacant dwellings tax, which, importantly, may also apply to those individuals even if the property is rented out. Long-term tenants and other individuals with the right to occupy the property may also be affected. Timely examination of the tax will be essential to determining if tax becomes due and maintaining compliance with the law as the first reporting date for the vacant dwellings tax draws near.

What is the tax on empty homes?

The Finance Act of 2022, Section 96, created the Vacant Homes Tax (or "VHT"), a yearly self-assessed tax levied at three times the rate of Local Property Tax (or "LPT"), omitting LPT local adjustment factors.

VHT typically applies to residential premises that have been used as a dwelling for less than 30 days of a chargeable period, however some exemptions may be requested.

The first taxable period will conclude on October 31, 2023, and subsequent chargeable periods will commence on November 1 and end on October 31 of the following year. As a result, a VHT return must be electronically submitted to the Revenue Commissioners by November 7, 2023, and any taxes owed must be paid by January 1, 2024, at the latest.