NPPR – Residential Property Tax on Second Homes
January 6, 2012
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Posted by Money Guide
The tax on Non Principal Private Residences ( NPPR ) in Ireland came into effect in Ireland on 31st July 2009.
The 2012 NPPR charge is €200 – it has been the the same amount since 2009
The 2012 NPPR charge is based upon the ownership and status of the property on the 31st March 2012. So - if you own a property in Ireland on 31st March 2012 and it is not your main residence you will be liable for the NPPR charge.( Non principal private residences).
You will also be liable for the new Household Charge from January 1st 2012.
Property owners need to pay the NPPR charge for 2012 on or before the 30th June 2012 to avoid late payment fees.
Although it is sometimes referred to as a “second home ” tax – it does not matter if you only own the one property . If you are not using the property it as your main residence – then you are liable for the NPPR .
The charge must be paid within two months of the liability date- i.e before 31st May 2012.
A late payment fee of €20 a month is payable after a further month has expired i.e three months after the liability date and one month after the last date for payment. There is a one month grace period – so all charges paid after 30th June 2012 will attract a late payment fee of €20 a month.
The “NPPR” charge is aimed at property that anyone owns in Ireland that is not used by them as their principal residence. You do not have to own two homes to be liable for this charge. You could be living in a rented house or living abroad while the home you own is empty or you have tenants in it.
The NPPR charge is the same for all properties – regardless of size, location or value.
The legislation for NPPR (Local Government (Charges) Act 2009 ) is structured with a starting position of a universal liability for all residential dwellings in respect of the charge. It then goes on to exempt certain buildings and owners from this liability.
The main exemption is for principal private residences. No person can have more than one sole or main residence. If you are renting a home and own another property – you are still liable for the NPPR. You don’t have to own more than one house to be liable.
Note : A property that is not suitable for use as a dwelling should not be regarded as dwelling within the meaning of the act . ( A temporary cutting off of the electricity or water supply does not make a property unsuitable)
Other Exemptions: according to nppr.ie
a) Where a person partly occupies a dwelling as his or her sole or main residence, and avails of and is entitled to the Revenue Commissioner’s Rent-a- Room Scheme, no liability for the NPPR charge will apply.
b) Charities are exempt
c)Properies that are liable for commercial rates will not be laible for the NPPR.
d)There is also an exemption for Newly Constructed but Unsold Buildings – that are vacant and have never been occupied.
Property Owners can register your properties and pay the charges online at the nppr.ie website by credit or debit card.
Property owners will also be able to register and pay at your local council offices using an NPPR registration form. The payment types accepted wil be credit card, debit card, bank draft, postal order and cheque. Over the counter payments will incur a €10 fee from Jan 2012
Late Payment Fees : if the NPPR charge is not paid within a month after the last date for payment, a late payment fee of €20 will apply for every month or part of month that the €200 Euro charge remains unpaid.
Landlords Note: Information from Revenue Dept is that the €200 charge is not an allowable expense for calculating rental income.
Property Registration:
It seems that the onus is on property owners to register any properties that are not their principal residence. There is no national housing / address database in Ireland – so it is probably going to be difficult for the local authorities to determine which properties are actually non principal private residences.
The Local Government Charges Bill 2009 allows for the use of information from the Private Residential Tenancies Board , the Revenue department and ESB to assist in the identification of non principal residences. There are probably many landlords who are not even registered with the PRTB – so there may be many rented properties that will be missed unless the owner voluntarily registers them.
Properties in the Rental Accommodation Scheme were exempt – but that exemption has been withdrawn from Jan 2012
There are also limited exemptions where a person is moving house and, in temporarily owns two houses for a short period.
Full details on www.NPPR.ie where you can register and make payments.
(Update - A Household Charge – a new property tax was introduced in January 2012 All owners of residential property are liable fo this - even those who already pay NPPR )
Categories: Charges and Fees, House Selling, Housing, NPPR, nppr.ie, Property Tax, RAS, Taxes
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Tags: nppr.ie
MY MOTHER BOUGHT A HOUSE WITH HER FRIEND AND STILL RESIDES THERE ON HER OWN, DOES HER FRIEND WHO LIVES ELSE WHERE HAVE TO PAY HALF OF THE NEW PROPERTY TAX EVEN THOUGH SHE ALSO IS HALF OWMER
I bought a house this year in the city, it is less than 2kl
from my existing home. My two sons are living at our home and I am moving to my new home. Is my new home reconised as a granny flat. No one is paying rent as they are home ocupied.
Mary – it does appear that this situation does qualify for exemption under the “Granny Flat” rule. But – it would be advisable to try and get your local authority to confirm this in writing.
I bought a second house in June 2010, do I have to pay property tax this year or next year?
I have a second house that used to be my PPR until 2008 when I bought my now PPR and (under advice from the banks) kept my old one as a rental property. It has now droped in value by 60%, the rental income, when it is rented has dropped by 40%, and I’m in major negative equity. I cant sell it, and even if I could I could not afford the negative equity debt. I havnt registered this second prop and I cant afford to pay the tax or the late fees as this noose around my neck is already too tight. I know I’m not alone in this situation, but my question is,
If I dont register to pay this fee, can I be found out and if so what are the consequences? You have already said its a volintary registration, so how can they catch people who dont pay? Any advice gratefully recieved
Cathy – When (if) you come to sell the property it is likely that the buyers solicitor will check for things like unpaid NPPR.
i inherted my dads house and farm 5 years ago ,then moved to uk 3 years ago for work no choice , farm is rented my sister lived in house until now she is moveing out , will i have to pay the 20 euro month fine since start if i regester now ?
ed… “probably” is the best answer
Please can you advise whether this tax is liable on a property that was legally signed over to my sister and I by my parents but with a clause we had inserted stating that my parents can continue to live in the property indefinitely.
PAtrick – to qualify for exemption under the “granny flat” rule – the property has to be less than 2km from the owners property. If niether you or your sister live within 2km – then it is unlikely to be exempt. Confirm this with your local Council – they may have some discetion ?