The Government has released another measure to reduce the strain caused by the housing crisis, but unfortunately it’s another measure which affects landlord’s income. The new property tax known as Vacant Property Tax (VPT) will affect landlords who own property(s) that are left unoccupied for a period more than 30 days per year.
Vacant Property Tax (VPT)
The tax itself is a new measure to combat the increasing shortage of rental properties available to tenants.
The new tax is expected to raise as much as €4 million in the first year, but the Government has been very clear that this is not an act of profiteering, but to apply pressure to landlords who have suitable unoccupied properties left vacant to put those properties on the market.
Introducing the tax, Minister for Finance Paschal Donohoe said in his budget speech, that “maximising the use of existing housing stock” was a key objective of the Government.
Exemptions
The tax will however have a large list of exceptions. Exemptions include properties already listed for rent, properties recently sold, properties vacant due to occupier’s illness or long-term care, and properties vacant due to significant refurbishment work.
Properties that will also be exempt are those not suitable for dwelling, properties classed as derelict and properties which are not liable for local property tax.
Will it work?
The tax has received mixed reviews however. Some are welcoming the news with open arms to combat the rising shortage in housing across the country, while the majority agree that the tax won’t make the difference required to provide adequate housing levels to those who need it.
If you are unsure as to whether or not you are affected by the change in the tax structure, it may be worth consulting an expert such as KPM Group
Property Management Company Dublin
During the property crisis we are seeing more and more regulatory, tax and legislative changes than ever before, therefore it’s so important to ensure you are keeping yourself up to date with all the new landlord requirements and rules.
KPM Group has helped countless landlords navigate these changes and set up profit earning property portfolios. Landlords trust us to deliver the maximum return on investment, whilst providing quality property management services.
Want to speak to us here at KPM about your portfolio? Get in touch today, and a member of staff will be happy to advise you.
