Proposed Residential Property Tax For All

Proposed Residential Property Tax For All

Residential Property Tax Proposed

So, the Government have just introduced a €200 property tax for owners of second homes, which might I remind you has been effective since the 31st of July, but now the Government are seriously exploring the idea of introducing a Residential Property Tax for all! That’s right, you heard me, anyone who owns a home, regardless if it’s your first, second, third … or fourth, if you own it, you might just have to pay tax for it in the not so distant future.

So why introduce the Tax? The idea behind the introduction of a Residential Property Tax for all is to help fill the massive shortfall we are currently experiencing with Ireland’s finances. Although it might sound like this might help to narrow the large gap it has been estimated that if the tax was brought in that it is unlikely to generate more than €1 billion a year i.e. it won’t really improve our current financial situation.

Happy to note that there could be a few teething problems with the implementation of the Tax which could delay it awhile namely; how will the Tax be calculated in a way that is fair for all? i.e. flat rate, calculated on property size, calculated on property value? Second, how would the Tax managed i.e. setup and administration for the X number of properties in Ireland. Thirdly, anger and opposition. An extra Tax means extra financial pressure on all homeowners in the current economic climate.

Following the recent introduction of the €200 property tax for second homes, it seems inevitable that homeowners will not escape this recession without a property tax of some sort. If the Tax is introduced maybe this time round it will be the same last time i.e. The Residential Property Tax in the 1990s caused a deal of disagreement that it was eventually phased out.

There are 24 comments for this article
  1. Gerr at 4:20 am

    The property tax is another shameless stealing act on the irish public’s pocket by the inept Cowen & Cronies.Co. The Greens, in their usual go with the flow attitude to sitting at the “big table” have no more interest in protecting or quashing this proposed financial burden than anyone else in politics who wants to protect the Dail/Oireachtas feeding trough.

    If the Government wants an extra tax on my property then I want my income levy returned! I think I have been accommodating enough in allowing that to be excised from what little I earn.
    I know this sounds like a vacant rant but I am thoroughly tired of having to count the pennies to see if I can meet my bills.
    I’m not entirely convinced that Cowen , Lenihan and the make up wearing Harney, realise that the whole world(that means Global Mr Cowen)is currently in recession.

    I for one will march on the Dail, as I do believe that enough is enough.

  2. Vincent at 12:25 pm

    I’ve no problem paying an annual property tax once they give me back the €28,000 stamp duty i paid just over 2 years ago.

  3. Tom Kearney Kearney at 12:58 pm

    If I own an apartment in Ireland and live there for 6 months of the year and I also owm or co-own a house in the U.S.A. where I live for the remainder of the year, what are mt tax liabilities to the Irish government? I am an Irish citizen.

  4. Graham at 2:30 pm

    Myself and my wife Live in Co Wexford and commute each day with our two children to work/School in South Dublin, We moved to Wexford becuase we couldnt afford anything with enough room for the same money – we paid €20k + stamp duty + €80 PW in Diesal + 3 car services per yr and now with help from our families needed to fork out €2000 for parts to keep the car on the road. My wife has just taken a 20% pay cut and i no longer receive my bonuses which are heavily relied on to make ends meet.
    The Stealth Tax levies on my pension + the fact that it lost 30% of its value since the beginning of the recession doesnt make sense to continue anymore. We cant afford to sell as the value is now negative to what we paid. Property tax if introduced will be the straw that breaks the camels back for us – I really cant believe the government doesnt take mine and the other god knows how many thousands of families in the exact same position or even worse into consideration, I know the country is in a desperate situation and its easy to go on complaining about who is responsible – that doesnt matter anymore! We need to control the negative domino effect thats happening. But even as writing this i already feel the minds of the government has been made up and if they want it they will do it regardless of the effects.
    Lets hope someone comes to their senses fast!

  5. Freddy at 2:20 pm

    We couldnt fit in my 1 bed apartment so we moved into cheap rented accommodation and got a tenant into my apartment.

    The new taxes mean we will be forced to move back into my 1 bed along with our baby girl. We will never be able to afford anything bigger, we will never be able to sell it and renting it out is penalised to the extent that the rent is almost all taken by the government.

    I am laughably called a “landlord’ by the government even though I own no land and I am pretty far from being a lord.

  6. Luke Meagher at 6:18 pm

    Well I am self employed own my own home , paying huge amounts in vat corp tax paye for the past 30 years . and No Im not some highly paid Civil Servant or Banker ,Im just a carpenter , Funny thing is because I got off my ass and became self Employed , I get NOTHING at all from the state ie no Disability allowance No dole so If Brian Cowen and his corrupt banking and Developer friends think for even One second that I or any other self employed person in this state , will pay property Tax on our Own homes ( on which the banks made their killing already through the mortage ) and on which the Stamp duty was paid . They can Totally forget it _ ANY IRISH PERSON WHO PAYS THIS TAX IS AN IDIOT !!!!

  7. Kanga Ru at 11:22 pm

    I have recently been informed by the Managers of my Pension Fund that as my fund includes a Residential Dwelling, that my fund has to pay the annual €200 on that. Can anyone comment whether that is correct. Also that I have to get a BER Energy Rating on it costing €370. Also that I need to register it with the PRTB (as its been empty for 3 years now I dont see I do). Also that they will be making an extra Admin Fee for dealing with all this. Coupled with the existing Admin Fee of €2300 I pay them each year for spending 4 hours printing my annual accounts – 1 house @ €300,000 plus €10,000 in the bank. I reckon I am looking at costs of at least €3,000 per year x 10 years to go plus the house might be worth only €150,000 in ten years.That leaves me with €110,000 in 10 years to retire on ( I cannot afford to pay into it now).

  8. christophe at 12:46 pm

    it is high time such tax is created in ireland as it is only fair
    A difference should be made between second property owners in Ireland and abroad (with difference within the EU and outside the EU)
    When some workers can not afford to pay a mortgage and some others own a couple of property, it would only bring some fairness in this country
    See what other countries did and use it as a model, let’s not re-invent the wheel and get caught in endless, pointless discussions!

    A proper Labour party would be good too!

  9. frank o Brien at 10:03 am

    Peter, I for one am just one of the thousands of property owners unfortunate enough to be at the usual property buying age when the property boom was in full swing.
    I have a 1800 ft2 house on .8 of an acre most of which is grass with some used for vegetable growth and chickens.
    I bought that house for, what was agreed at the time was a very good price for the size of property.
    If the property tax were implemented in the way you say it should, then I’d be there at the top of the pile forking out more and more TAX annually on top of the new income levy, the increases health levy (PRSI) along withg all of the already existing taxes and charges we all already pay.
    I lost my job recently and my wife is being put on short time soon aswell, you seem to be forgetting that not everyone is working at the moment and many more will be losing their jobs in the not too distant future aswell, many of them in the same boat as myself.
    At the moment its a struggle to pay the bills and keep a roof over our head but thankfully we’re managing…just…and the introduction of a property tax along with everything else could mean the death knell for my home…so before you mouth off with your ideas…..have a look at the full picture not your obviously blinkered version of current events with the country and then make a more informed and better balanced comment.

  10. Dankoozy at 9:32 am

    fixed rate wouldn’t be too bad but anything based on the value would be ridiculously unfair, and basically send a lot of people without much of an income who happen to own a big house packing. this only benefits rich people with an income to match as only they will be able to afford living in a large house

  11. Trish O’Duffy at 3:57 am

    Delighted to hear it Chris that the Irish people will march – hopefully that message will get to the ‘boys’ in Dail Eireann loud and clear because at the moment with all the ‘scouting’ soundbites being released through media it looks to me like they are planning their strategy to introduce property tax. And from reading other comments I would like to inform people that the property tax truly is a double tax because we already pay income tax to cover roads, infrastructure, health etc.
    Anyway I hear there’s a group known as the ‘Golden Circle’ who are pretty flush with money – perhaps they could ‘lend’ or ‘give back’ a few bob!!!

  12. Dankoozy at 1:41 am

    This business with bringing in a property tax ‘because all the other countries have one’ has to be the worst reason ever. Individual utilities should be paid for but taxing the property itself, a one-off purchase every year is ridiculous.

  13. Samantha at 10:26 pm

    They really need to think hard about this before it’s introduced. They have a terrible habit of bringing in all these new laws and only thinking about them later. I was one of the unlucky few who boughy my first home, paid €20k stamp duty and 3 months later it was abolished. So as far as I am concerned I have paid my tax.
    In addition to this, yet again it is the ppl who actually bother to buy their house and get hit with this. Will all the ppl in council houses have to pay it too, or yet again will they get away with it while we get caught for wanting to stand on our own feet and not rely on the state.

  14. Bev at 5:00 pm

    Just because other countries (like the UK) pay property tax doesn’t mean that we should automatically follow suit. The ‘Council Tax’ in England takes account of the value of your property and the area you live in. Each household’s tax contributes to the local police, fire service and bin companies. We already pay our own bin charges separately here. As we hit a recession the VAT went up (the UK’s went down – so why not follow suit there too?) Thousands of people have lost their jobs and many are still at risk. We are governed by crooked and corrupt politicians which is now only officially coming out and I’m sure there’s many backhanders and bribes that we’ll never know about. The Irish nation seem to complain a lot, but don’t do anything to change things. Look at Bertie – he got away scot free. (And he wasn’t Ireland’s first). Ireland welcomed the Celtic Tiger with open arms years ago and because of bad financial government spending and many greedy policitians and entrepreneurs there appears to be very little left from all the VAT and Stamp Duty that we all paid. If the property tax comes in it will only rise year on year and it won’t disappear once the recession ends and people are buying property again. Local politicians allowed bribes from property developers to build too many houses and shopping centres – with many standing empty nationwide. However, the health care is worse than the UK (and they don’t pay GP costs and only pay fixed prescription rates) and many of our children are being taught in temporary, bad insulated prefab structures. As they try and introduce new taxes – how do we know that it will be spent wisely. Economists warned the government back in early 2006 about an impending recession, but they ignored this information because ordinary people were still spending. However, manufacturing was slowing down and that’s what was/is important. I have very little faith in the government as you can see and I could go on for hours, so I’ll stop now.

  15. Chris Brennan at 8:33 pm

    One thing I can tell you Trish is that Irish people in general do not march on politicians very often as Fianna Fail had realised but recently they have begun to feel the wrath of the people with their inept ideas to put their hands into our pockets and take what they want. The pensioners showed their grey power when the government tried to take away medical cards from the people that built the foundation of the state we now enjoy, the unions showed their power in the face of Fianna Fail arrogance over minimum wage and partnership for prosperity talks, the teachers, guards and nurses too with the public pension levy. If the government try to bring in a property tax there will be about 4.5 million people waving banners on Dail Eireann shouting NO! Maybe then we might see a brighter day for governence when the government realise who THEY work for and not their ignorant belief of who works for them.

    No more taxes, no more levies!

  16. Trish O’Duffy at 6:24 am

    I would like to agree with Peter McMillan. I have lived in Tasmania for 4 years and and the most dreadful thing I witnessed was people’s homes being sold as they could not pay their property tax (Rates). One thing I know from Australia is that it’s like England in that rates or property tax is paid on a yearly basis. This is a crippling tax if you are unemployed or a pensioner. It is truly a double taxation. When the property boom hit Tasmania a lot of pensioners saw their property values increase and along with it their tax – and there is only a small concession allowed on rates on property if you are a pensioner or unemployed. It’s the same as commercial rates insofar as it is worked off the value of your property. And nobody has control over what their property may or may not be worth at any given time. If the Irish people allow this unfair tax in it means that our forefathers fight for the right to our land has been done in vain. What most people do not realise is that once it is written into legislation it gives the Tax Official a right to sell your property if rates are left unpaid. I’ve seen a lot of property auctioned off to the highest bidder in order that the Government receives it’s rates payment and once they get that they don’t really care what price is got for the property – then the owner gets whatever’s left and is out of a home. These are second homes – these are people’s only homes. It is very, very sad.

    I know a lot of people are saying that it will be a one of tax per year but it is the thin edge of the wedge as far as I’m concerned – this Government has proven itself beyond accountability and will have no hesitation in bringing in charges to the property tax should the Irish people not voice their opinion and outright rejection of this proposal.

  17. daisy at 3:08 am

    it would elimnate the decreased in revenue when market down…IE less stamp duty when houses are not selling…..
    we also pay hefty mortgage tax when house sells…..
    It would give the government a more steady form of income so that you can still enjoy getting your “Child payments” monthly….

  18. daisy at 3:06 am

    we gave paid property taxes here (US) for a very long time.. based on property value.. …and the newer the house…the higher the taxes

  19. Sandra Smith at 12:20 am

    I already paid tax on my house – when I bought it! It’s called stamp duty and if any of us move house once then we all get to pay it. And now they want us to pay tax on the same property again – this country makes me want to scream. The sheer incompetence and ineptitude and wastefulness of our ‘betters’ in government, it’s enough to make anyone scream. We had a two-bedroom house, had a child and moved to a three-bedroom. We paid out over 20,000 euro in stamp duty. We won’t be able to move again for years, we can’t afford to. There will be opposition to property tax, you can bet on that.

  20. Chris Brennan at 7:53 pm

    I totally support what Mr. McMillan is saying here. There is a reason why property taxes work so well in other European nations… They pay less personal tax than we do here. While the government has squandered the tax they have collected over the lifetime of the “boom” we experienced it is we, the working and middle classes, that will eventually have to bail them out! Introducing a property tax will be the final nail in the coffin for all those hard pressed families that have lost their job or had their incomes reduced by companies who are working in a non-competitive environment brought on by a government that would allow price increases by semi-state bodies and drive up energy costs, allow inflation to run high, sign agreements with companies to extract and sell our natural resources for us to only get the tax off their profit, allow the prices to go that high that people are looking a few miles over the border just to make ends meet when it comes to grocery shopping. Sure, they crititize us for going over the border to buy cheap food while the DEPARTMENT OF DEFENCE BUY SOUTH AMERICAN BEEF TO FEED OUR SOLDIERS!!! I could go on and on. Putting a universal property tax on us now will force many people into the eventuality we all fear, losing our home to the same banks that our inept government has bailed out with OUR MONEY! After tax we earn a pittance, allow us to keep it!

  21. Ronan at 6:34 pm

    That’s just madness, we just paid hundreds of thousands of euros to have our own place, with income taxes, stamp duties not being much of a help, just to be punished with yet another tax…

    And then they are surprised that yet budget income is low, because we are spending less… of course we are, we have nothing left to spend!!!

  22. Peter McMillan at 2:48 pm

    Great country Ireland – but unfortunately administered by the inept arrogant and corrupt regime. Over the last 30 years had the mafia observed and learned how things work in Ireland and then applied that in America – they would have become untouchable.
    A property tax – sounds like we spent 800 years trying to get our freedom and land rights only to be eventually taxed for having done so.My fathers brother died in the Civil war aged 19 – he and his contemporaries would be calling for a revolution if they could see how Ireland is being run.I have second property in Wexford which I built by hand and hard work along with my wife and children – pure hard work – now I have to also pay tax on that. I rent that property and bring a lot of money into tye country with Americans, Kuwaitis, British ,Italians and so forth bringing and spending money in the country – and am going to be penalised for doing so. This moronic government just keeps shooting ordinary worthwhile ventures in the foot and ordinary joe soaps as usual will have to pay for all the corruption and greed.
    Talk now of reducing the minimum wage – Unbelievable, disgraceful, taxing the poorest and protecting the wealthy – was it worth all the struggle of 800 years just to go full circle – we may as well be still ruled from London – in fact we would probably be better off in many ways.
    Peter McMillan.

  23. Peter O’Connor at 12:57 pm

    Of course we should pay property tax. It’s sheer madness we don’t. BUT it should be estimated on size of house plus to a lesser extent the size of land/property around the house.
    If I’d my way I’d then estimate the ratio of garden that’s grass and vegetable. Tax the grass.
    Double the tax on holiday-homes first though that’ll at least slow down the onset of tax on first homes. (the first 80m2 should be free for lower income groups. And no that does NOT include me.

  24. al at 12:55 pm

    Just introduce it already… it works successfully in many other countries. Reckon it should be introduced to replace stamp duty, removal of which might encourage some people to buy. Would mean the tax from property would be more consistent year on year and would eliminate the government reliance on the stamp duty bubble tax which is down over 90%.

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