Immovable property tax is payable annually, calculated by reference to the market value as at 1 January 1980 of immovable property owned by the taxpayer at the beginning of the calendar year. Some years ago the government announced that it intended to rebase the tax onto current values and carried out a revaluation for this purpose in 2014. However, for 2016 the liability will continue to be calculated by reference to 1980 values, by applying the following rates to each successive tranche of the total market value of immovable property owned by the taxpayer as at 1 January 1980
|
1 January 1980 value |
Rate |
|
First €40,000* |
0.6% |
|
Next €80,000 |
0.8% |
|
Next €50,000 |
0.9% |
|
Next €130,000 |
1.1% |
|
Next €200,000 |
1.3% |
|
Next €300,000 |
1.5% |
|
Next €2,200,000 |
1.7% |
|
Excess over €3 million |
1.9% |
*Owners whose total immovable property is valued at less than €12,500 are exempt from immovable property tax.
Taxpayers who settle their 2016 immovable property tax liability by 31 October 2016 are entitled to a 75% discount. If the liability is settled between 1 November and 31 December 2016 the taxpayer is entitled to a discount of 72.5%. If the liability is settled after 31 December 2016 it will be discounted by 69.75%. If the total liability after any discount is less than €10, it will be waived.
Immovable property tax will be abolished with effect from the beginning of 2017.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.