Exemptions from Local Property Tax

Introduction

Certain properties are exempt from the Local Property Tax. Some people may be able to defer payment of the tax if they meet specified criteria. You can read more about deferring payment of LPT.

Exemption for residential properties purchased in 2013

Any person who purchased a property in 2013 qualifies for an exemption from LPT once they occupy the property as their sole or main residence.

If you purchased a second hand property in 2013 and qualify for this exemption, you can claim your exemption online. Instructions on how to claim the exemption are available on the Revenue website.

Properties that are exempt from Local Property Tax

Properties purchased in 2013 are exempt until the end of 2019 if used as your sole or main residence. If the property is subsequently sold or ceases to be your main residence between 2013 and 2019, the exemption no longer applies.

New and previously unused properties purchased from a builder or developer between 1 January 2013 and 31 October 2019 are exempt until the end of 2019 (even if sold again in that period).

Residential properties constructed and owned by a builder or developer that remain unsold and have not yet been used as dwellings (known as trading stock).

Certain properties situated in unfinished housing estates (commonly called “ghost estates”) specified in the Finance (Local Property Tax) Regulations 2013.

Properties certified as having a significant level of pyrite damage. The exemption for properties that have significant pyritic damage was extended by the Finance (Local Property Tax) (Amendment) Act 2015. This exemption applies to residential properties that have been shown to have a significant level of pyrite damage. In these cases the properties will be exempt for approximately 6 years. You can read the detailed guidelines on revenue.ie.

Residential properties owned by a charity or a public body and used to provide accommodation and support for people who have a particular need in addition to a general housing need to enable them to live in the community (for example, sheltered housing for the elderly or people with disabilities).

Registered nursing homes.

Properties vacated by their owners due to illness. This exemption applies to a property which was occupied by a person as his or her sole or main residence and has been vacated by the person for 12 months or more due to long-term mental or physical infirmity. An exemption may be available in situations where the property has been empty for less than 12 months, if a doctor (registered practitioner) is satisfied that the person is unlikely to return to the property. In both cases, the exemption only applies where the property is not occupied by another person.

If a person qualified for the nursing home exemption on 1 May 2013, the property remains exempt until the next valuation date (1 November 2019). Even if the person dies and the property is sold, the exemption stays with the property. However, if a person qualified for the exemption after the original valuation date, 1 May 2013, then the exemption only lasts as long as the conditions under which the exemption was granted. If the individual who owns the property dies then the property becomes liable for LPT at the next liability date (1 November of each year).

Mobile homes, vehicles or vessels.

Property fully subject to commercial rates.

Diplomatic property.

Properties used by charitable bodies as residential accommodation in connection with recreational activities that are an integral part of the body’s charitable purpose such as guiding and scouting activities.

Property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence. (Note that there is also a relief from LPT on properties that have been adapted for occupation by a disabled person. They can qualify for a reduction in the market value of the property for LPT purposes. This relief only applies where the adaptation work increases the market value of the property.)

You can read more in Revenue's Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals (pdf).

How to apply

To claim an exemption you must complete your Local Property Tax Return and indicate the exemption condition you satisfy (the booklet (pdf) lists each condition). You should submit your return by the relevant deadline. If you do not make a return and tell Revenue that your property is exempt the Revenue Estimate may become payable.

If you did not qualify for an exemption in previous years but now qualify you should apply for an exemption by writing to the Revenue Commissioners (see address below). You should provide your name, Property ID, Property address and your PPS number or tax reference number.

Where to apply

The Revenue Commissioners

Local Property Tax (LPT) Branch
P.O. Box 1
Limerick
Ireland

Tel:+353 (0) 1 702 3049
Locall:1890 200 255
Homepage: http://www.revenue.ie/en/tax/lpt/index.html

Page edited: 7 December 2016