€200 Property Tax on second homes goes ahead

€200 Property Tax on second homes goes ahead

More Tax to pay In the budget back in October the possibility of a €200 charge on second homes was discussed and yesterday the Government gave the green light for this new property TAX to be introduced with a start date of this year!

The €200 property charge applies to all home owners of a second home who are receiving payments from letting the property. … Some exceptions to the TAX include; Buildings of particular heritage, Properties own by charities, Properties held or co held by a local or public authority, building that are not used as a dwelling, the list goes on…

As said earlier, the new €200 property tax will begin in the 2009 TAX year; the date has yet to be set. The bill will be introduced in the Seanad on Wednesday, July 1st, and is expected to be through both the Dail and Seanad by the following week on the 8th of July.

Although the Tax has been welcomed with open arms by Fianna Fail and Chambers Ireland, the opposition mounted a bit of objection – which is only to be expected and the Irish Property Owners Association has voiced that the tax is unfair and will challenge the legislation.

Read more: €200 Property Tax on Second Homes

There are 18 comments for this article
  1. Polly at 3:58 pm

    Listen guys, All of you who say that those of us who own a second home are rich and deserve to pay more have a bee in there Bonnet. There are some of us who live abroad and have no option but to keep our home in Ireland as we hope to return one day and selling it is not an options. So please don’t throw all your apples in one basket and say we deserve what we get.. Just think..

  2. hans at 5:58 pm

    Property tax on second homes.
    We know that a lot of holiday homeowners didn’t pay.
    And maybe they are right because no one ever got a letter stating that they had to pay the NPPR.
    The people that played are made into fools again.
    The government got only one million euro in 2009.
    I don’t have to tell you how I feel being a soft target for this arrogant government.
    Why should only one out of 40 pay?
    If there are 200000 second homes the government should get 40000000.
    Should I pay? Or should I wait till they throw me in jail?

    Analysis Home
    [AD]
    By Brendan Keenan
    Group Business Editor
    Wednesday March 23 2005

    That is one interpretation of the analysis of the country’s housing stock produced by Prof. John FitzGerald of the Economic and Social Research Institute (ESRI) and published today. His most startling conclusion is that one in six houses in the country are second homes, most of which are vacant most of the time. In the Border, Midlands and Western counties (BMW), the proportion is one in five.
    It has been clear all along that a lot of the 350,000 houses built since 1996 must be second homes, bought wither as holiday homes or investments. The growth in the number of households simply could not fill that number of dwellings. But it was difficult to know how many there were.
    Prof. FitzGerald uses census returns and household surveys to arrive at his results. But he notes that the ESB has connected 100,000 more dwellings than are officially supposed to exist. The chances are that the ESB figures are more accurate and that country’s housing stock is now around 1.7m.
    That means that about 200,000 of them are second homes. Based on Census returns, only a small proportion are rented-out as holiday homes. The majority are used by the owners themselves, who often see the property as both an investment and a place to spend the holidays.

  3. Ruth at 11:38 pm

    I would also like to know the answer to this, if you have a second home but do not use it for letting purposes, are you still liable to pay the tax?

  4. pauline at 11:12 am

    We bought a house 5 yrs ago in Wexford.Its a holiday home and some day please God we are going to retire down there. I do not rent this house out as I don’t want it to get wrecked.. I’m I liable for the €200 tax as its not rented?

  5. sinead at 7:54 pm

    Anybody know if this tax is liable if you live abroad and you have rented out your primary residence in Ireland? We are renting out our home in Ireland and are renting a house in the US.

  6. sinead at 7:53 pm

    Anybody know if this tax is liable if you live abroad and you have rented out your primary residence in Ireland? We are renting out our home in Ireland and are renting a house in the US.

  7. Alan at 1:00 pm

    I have no sympathy for anyone owning a second house, make it a minimum of €1000 a year. The vast matority of second house owner have them for investment, and investments rise as well are fall – so if you are in negative equity then deal with it, that is the risk. If we had proper laws/taxes in the first place there would have been plenty of houses to go around, the normal job soap who wanted a house to live in was in competition with investors (who also get intertest relief on this second house, crazy). If you can’t afford €200 (and it should be more), then sell the house and take the loss if necessary.

  8. Linda at 3:13 pm

    That is your choice to keep them empty. I don’t mind paying the €200, I only have a second home because I had an apartment before I got married and it is easier to rent it than sell it at the moment. I am by no means Rich and my Husband is currently unemployed so we are struggling.

  9. Linda at 3:12 pm

    That is your choice to keep them empty. I don’t mind paying the €200, I only have a second home because I had an apartment before I got married and it is easier to rent it than sell it at the moment. I am by no means Rich and my Husband is currently unemployed so we are struggling.

  10. Caroline at 1:56 pm

    Begrudgery lads. To own a second home is not to say you are rich. My Husband is now redundant – both houses in negative equity. That should brighten up your day Sandra!!!

  11. Robert Browne at 9:25 pm

    Your investment in property was destroyed by the government who have been criminally negligent, as follows: They poured incentive after incentive onto a property bubble. The regulator failed to regulate the buy to let mortgage market or any mortgage market. He dismally failed to halt the banks profligate behaviour when banks were competing with each other to give the largest loans. The regulators office was in the Central Bank which also failed to interfere in the governments property gold mine. The government grabbed all “stamp duty” from people who thought they were making an investment (pension or otherwise) whether they were moving to a house more suited to their family or whether there was a death in the family and a property had to be sold. Stamp duty was and is a ruthless tax on mobility.

    The government received over 40% of the proceeds of every single property by way of VAT on materials and services, Income tax on labour, stamp duty and other indirect taxes which they sanctioned such as development contributions and commercial rates! And don’t forget they also grabbed one in every five houses built by developer as local authorities were too lazy to build their own. Latterly, this grabbing turned sour as they actually grabbed to much and now have to pay the mortgage in properties which tenants refuse to move into!

    They allowed local authorities to charge contributions towards the maintenance of sewers and water pipes. But, if a builder wanted to connect up to the pipes which you were already paying “to maintain” you were charged again! As much as Euro 5,000 per meter of pipe that had to be laid. Of course you had to pay stamp duty on ‘site accquisition” too. All these costs were passed on to the Buy to Let investor compliments of the government! Who now wants you to pay another 200 Euro for openers next year it will be double that!

    Now your second home is in negative equity or your second home is empty. Your job may be gone or in doubt. Your taxes have gone through the roof and your wage or salary are way down. Despite the fact that your government has been profligate and criminally asleep at the wheel Mr. Gormley thinks you should now be FINED another Euro 200 for trying to better your lot in life. You have made a big mistake you bought a “second” home.

    Never, make that mistake again folks, never invest in any asset in Ireland because, if you do, you will be punished severely. Now pay up as Mr. Gormley demands!

  12. Ger at 9:44 pm

    If me and my wife were considered individually from a taxation point of view then she could have a house and I could have a house and none would be considered a second home. Therefore it is unjust therefore to consider one of them a second home just because we are married

  13. Grainne at 2:36 pm

    I bought a second house about five years ago as I have no pension in my job. I never charged big rent for it, now my house is empty since June 08 and I have to cover the mortagte on it and my own house where I live. My husband has no job and I am on a three day week. So no I dont think people saying ONLY €200 is fair. I have no money as it is every month, I dont have holidays or go out to the pub. I bought this house as the government think my job does not deserve a pension, even tot I am a civil servant, and pay a full PRSI Stamp. So not all government staff have big pensions. The whole thing is rotten.

  14. cadatharla at 9:50 am

    200 euros is too little. Those who have littered the Irish countryside with empty houses and those who through their greed made housing unaffordable for young people in Ireland, Bulgaria, Hungary etc. should be made pay a lot more.
    In Italy there has been a tax on 2nd homes for years, I pay almos 2000 for a 2 small apartments which I keep empty. This tax goes to local not central government.

  15. Mathew at 6:11 pm

    I built a cottage on my land for my farm help. Will I have to pay €200 for that cottage?

  16. John at 2:00 pm

    I know its only 200 euro, but my perents spent 25 years of their lives building a second house. Why should they be hit. All of our holidays when i was younger where spent doing this and my perents.
    Now my dad is out of work cause of the drop in work. My mam got hit with the pension penalty.
    I now earn more than the 2 of them in total.
    Doesnt make sense to me….

  17. Sandra at 3:59 pm

    Why is it only 200 euro? Most of us are struggling to get by and pay the mortgage on just one home. We need more progressive taxation policies and not just token gestures introduced by the rich for the rich.

  18. Carl at 3:28 pm

    Another stealth tax. We knew it was coming and to be honest, I thought it would be more. Lots of us bought a second home at the height of the market instead of taking out a pension plan and now we are going to be taxed on it. You just can’t win. Lets see what happens in the next budget…

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