Second home owners in Ireland are to be affected by a new annual
property tax from next year. Capital Gains Tax for second homes is
also being increased.
Announced in Ireland's budget, the new annual property tax for
holiday homes in Ireland
could generate €80m per year for local authorities, according to The
Irish Times.
Owners of holiday homes,
second homes and investment properties in Ireland will have to pay
€200 for each additional property they own.
The additional income will be used to compensate the authorities for
a €25m reduction in exchequer funding in 2009. The €200 property tax
will go into a central fund, rather than directly to the local
authority where the property is located.
As well as the new property tax, owners of such properties will also
face a two per cent increase in capital gains tax when selling their
property, writes The Independent. From 2009, this will stand at 22
per cent on the profits of the sale of non-principal private
residences.
There are approximately 200,000 second homes in Ireland, 50,000 of
which are listed as holiday homes, according to the country's
Central Statistics Office (CSO). A further 200,000 people own
buy-to-let properties in Ireland.
|
Home
New Tax on Holiday Homes