NPPR – Residential Property Tax on Second Homes
March 27, 2012
|
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 house as your main residence – then you are liable for the NPPR .
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 NPPR charge applies to every residential property owned by a person which is not the principal or main residence of the owner. This includes any house, maisonette, flat, apartment or bedsit.
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) Properties owned by 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
| 
Tags: nppr.ie
My father died without making a will. My mother and siblings signed the house to me with my mother keeping a right to residence. I have since got married and my wife owns her own house. My name in not on the deeds or mortgage of my wife’s house. we visit and sometimes stay with my mother. The two houses are more than 2km apart. Am i exempt from paying this tax. My mother naturally doesn’t pay me rent.
Michael – Looking at the regultions – it appears that you will be liable for the charge. Check with the local council – but I would be surprised if they said you are not liable. Let us know what they say.
A follow on from 198/199. Checked with my local council today. I am exempt from the charge because of my mother’s right of residence. Her right to residence is on the deeds (legal document) and it’s classed as a “Burden” on the property and I am not free to do what I want with it. (ie.sell or rent). It is important that the right to residence is on a legal document. Good news for me…
Hi there,
I have a 2nd home but on each of the two “liable dates” for ownership there were no WC’s fitted in the house.
Am I exempt under the qualification of it not being a habitable dwelling?
And where does the burden of proof lie in this area and what would be considered as acceptable evidence?
Do I have to pay the nppr tax on a my uncles council house that was bought from the council but will not be transfered into my name until after his death ?
is there any exemption or reduction for someone who is unemployed. i have two houses but lost my job and have no income.
I have a house in Kerry but live in US, I only just heard of this. We did not recieve any notice in the mail. Being out of the country how were we to know! I only found out by pure chance.
Will they charge me the penalties of 20 euro a month since October 2009?
Bridget – sadly it is likely you will be charged the penalties – but you should try and complain and point out that there was no way you could have known about this charge before now. Good luck .
Does anyone know what % of people actually paid this tax and if there is an appeals procedure for those who did not know about it?
Daniel – noone knows how many properties there are that would be liable for this charge – so there is no way of knowing who hasn’t paid.
There does not seem to be a formal appeals procedure – but you should start with your lcal council.