Non Principal Private Residence Charge

The Local Government (Charges) Act 2009 introduced a charge on Non Principal Private Residences (NPPR).  The charge is currently €200 per annum.  The charge is levied on any person who owns a NPPR in the State at the 31st March. 

The charge must be paid by 30th June to avoid any late filing fees.  So for 2012 any person who has a NPPR has until the 30th June 2012 to pay the charge.  A late filing fee of €20 per month is levied on late payments.

The charge can be paid online at www.nppr.ie. 

How often do I have to pay the charge?

The charge is an annual charge.  This is unlike the PRTB charge which is levied on the change of tenancy or once every four years whichever is the lesser.

Does the charge only apply if I have two properties?

Although the charge is often referred to as a “second home tax” you can still be liable to the charge if you own one residence but don’t live there. 

Does the charge only apply if the property is rented?

No.  There is no requirement for the property to be rented for the charge to apply.  Therefore, a holiday cottage that is never rented would be liable to the NPPR.

I own a mobile home.  Is this liable to the NPPR?

No.  Any vehicle or mobile home is not liable to the charge.

I have moved to Australia and currently renting my house in Ireland.  Do I still need to pay the NPPR?

Yes.  Regardless of where you are resident you are liable to the NPPR on any residence located in Ireland that is not your principal residence.

I bought a new house and currently trying to sell my old house.  Am I liable for the charge?

If you purchased the second house within one year prior to the liability date (31st March) and sell the old house within six months after the liability date you will not be liable to the charge.  If you are unsure of whether you will sell the old house within this six month time limit you should pay the charge.  If you do sell the house within six months you can apply for a refund of the charge paid.

Are there any exemptions from the charge?

Section 4 of the Local Government (Charges) Act 2009 sets out the properties which are exempt form the charge.  The main exemptions are as follows:

• Principal Private Residences (including residences where rent a room relief is claimed)
• Temporary ownership of two properties (see above)
• A property liable to commercial rates
• Residential properties owned by certain charities or held in a discretionary trust
• A property occupied rent free by a relative of the owner and the owner lives on same property or within 2 kilometres of the property.
• A property vacated due to owner being long-term incapacitated as a result of physical or mental illness.
• Joint ownership of a second property after a divorce or separation agreement where the second residence becomes the primary residence of one the parties.

Date published 1 May 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.