Budget 2013 Property: Property tax collection will be strictly enforced

Homeowners are being warned that collection of the new Local Property Tax will be strictly enforced and that any unpaid taxes, plus late payment interest, will have to cleared before their property can be legally sold or transferred.

The warning came as the much-leaked details of the new tax were confirmed, with a standard rate of 0.18% applying to dwellings valued at under €1m and a so-called mansion tax of an additional 0.25% applying to any portion of the value that exceeds €1m.

That means owners of a house with the national average value of €175,000 will pay €315 annually, although, because the tax only comes into effect on Jul 1 next year, they will pay half that amount, or €157, in 2013.