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Ireland – Property Taxes

Property Tax

  • Property tax in Ireland is called Local Property Tax (LPT) and is based on the market value of the property. The LPT rate is determined by the local government and ranges from 0.18% to 0.25%.
  • The LPT must be paid annually by the property owner, and can be paid in one lump sum or in monthly instalments.
  • Failure to pay LPT can result in penalties and interest charges.
  1. Capital Gains Tax (CGT)
  • CGT is charged on the sale of a property that is not your main residence. The rate of CGT is 33% on any gain made from the sale of the property.
  • Any gain made on the sale of a property is calculated as the sale price minus the purchase price, and any costs associated with buying or selling the property.
  • CGT is paid by the seller of the property.
  1. Inheritance Tax
  • Inheritance tax in Ireland is charged on the transfer of property through inheritance. The rate of inheritance tax is 33%.
  • However, there are exemptions and reliefs that can be applied to reduce or eliminate the amount of inheritance tax due.
  1. Gift Tax
  • Gift tax in Ireland is charged on the transfer of property as a gift. The rate of gift tax is 33%.
  • There are exemptions and reliefs that can be applied to reduce or eliminate the amount of gift tax due.
  1. Tax on Property Income
  • Tax on rental income from a property in Ireland is charged at the standard rate of income tax, currently 20%.
  • Tax reliefs are available for landlords, including a tax credit for repairs and maintenance on the property, and a tax credit for interest paid on a mortgage used to purchase the property.

Tax Advantages of Buying a House in Ireland

  • There are several tax advantages to buying a house in Ireland, including:
  • First-time buyers are eligible for the Help to Buy scheme, which provides a tax rebate of up to €20,000 for the purchase of a new home.
  • Tax reliefs are available for landlords, including a tax credit for repairs and maintenance on the property, and a tax credit for interest paid on a mortgage used to purchase the property.
  • The Home Renovation Incentive (HRI) scheme, which provides a tax credit for homeowners who undertake renovation or improvement works on their homes.
  • The Living City Initiative which is a tax relief for owners of certain properties in certain designated urban regeneration areas, this relief applies to properties bought between June 2013 and December 2020.

It’s important to note that tax laws and regulations are subject to change and it is always recommended to consult with a tax professional or accountant to understand the specific requirements and benefits of buying a house in Ireland.