2,000 property owners have claimed exemption from Vacant Homes Tax

Minister for Finance Michael McGrath said he noted the “significant” number of property owners who registered for the tax. Picture: Domnick Walsh

Just under 2,000 property owners have claimed an exemption from having to pay the Vacant Homes Tax, new figures have revealed.

Revenue’s online portal for the new tax saw 50,000 properties reported as of Monday, with some 5,000 declared vacant.

Of these 3,000 are set to be liable to pay the tax with the rest claiming an exemption, according to the Department of Finance. The Vacant Homes Tax, aimed at increasing the supply of homes to rent or buy, was set at three times the property’s base local property tax rate. In Budget 2024, this increased to five times the rate.

It was one of a number of levers brought in by Government aimed at bringing vacant properties back into use.

Minister for Finance Michael McGrath said he noted the “significant” number of property owners who registered for the tax.

“This measure is primarily designed to encourage bringing habitable properties back in to use as homes and forms part of a wider suite of measures to tackle housing vacancy and optimise the use of the national housing stock.

“In light of the shortage of available accommodation at this time, I decided to increase the Vacant Homes Tax in Budget 2024 and the new rate will apply to the chargeable period which began on November 1.”

Of the 1,965 properties for which owners claimed an exemption, the most common reason cited was the property undergoing structural work (972 cases).

Some 580 exemptions were sought where the home was marketed for sale or rent, 256 due to the property being unoccupied due to the owner’s illness, and 116 where the owner had died. Other reasons included where a grant of repossession was issued and the property being subject to a court order.

Revenue identified a number properties which may come under the scope of the tax, the department said. A preliminary register has been used to issue letters to around 25,000 property owners. “Property owners are required to self-assess their liability and submit a return if they determine that the tax applies to their property, even if they do not receive correspondence from Revenue,” it said.

“The obligation remains on the taxpayer. Revenue may contact further property owners at a later date following further data analysis.”