The Vacant Homes Tax (VHT) was introduced in Budget 2022 as one of the latest measures taken by the Government to increase housing supply. 

VHT is an annual tax and will become payable in November each year. The first VHT return is due on / before 7th November 2023. 

If applicable, VHT will be charged at the rate of three times the Local Property Tax (LPT) charge, excluding the local adjustment factor. Therefore, if the basic LPT charge for a property is €315 per annum, and the local adjustment factor is €28, the VHT liability will be €945 (€315 x3). 

We have set out a brief summary of the changes introduced below. 

Which properties are subject to the VHT?

VHT will apply where a property: 

  • Is suitable for residential accommodation, but
  • Has been occupied for less than 30 days in the chargeable period. 

For 2023, the chargeable period commenced on 1st November 2022 and will cease on 31 October 2023. 

Essentially, VHT is aimed at long-term vacant properties. However, there are exemptions available which should ensure owners are not unfairly charged where the property is vacant for genuine reasons. 

Properties which may fall within the scope of this tax may include holiday homes, which remain unoccupied for the most part of the chargeable year, residential properties that were bequeathed to the taxpayer, but are currently neither occupied nor let, etc. 

What steps need to be undertaken by a property owner?

Please refer to the flowchart below to determine if your property is liable to VHT and the relevant filing requirements. 

If you feel that you own a property that may be subject to VHT, please contact a member of the team today.

Based on your situation, we can determine whether the property falls within the scope of VHT or if a VHT exemption can be claimed. We can also assist with the submission of the relevant VHT return and payment. 

Tel: 021 486 1486

Email: info@mc2group.ie