Exemptions from Local Property Tax

Introduction

Your property is liable for Local Property Tax (LPT) if it is a residential property on 1 November.

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.

Some properties that were exempt up to 2021 will be liable for 2022 LPT, including properties built since 2013. If your property has not previously been registered with Revenue for LPT or stamp duty, you will need to register your property.

If your property is exempt, you still have to assess the value of your property and make a Local Property Tax return.

Changes to exemptions

Local Property Tax due in 2022 will apply to properties that have been built since the last valuation date of 1 May 2013.

The exemptions for first-time buyers who purchased property between 1 January 2013 and 31 December 2013 and the exemptions for homes in ‘ghost estates’ will lapse. The temporary exemption for pyrite damaged properties in certain areas will be phased out.

Properties vacated by their owners due to illness will continue to be exempt but under the proposed changes the vacant properties can be made available for other people to live in.

Properties that a builder or developer has built, but not yet sold, are no longer exempt.

There is a new exemption for properties built with defective concrete blocks.

Exemptions from Local Property Tax

Properties certified as having a significant level of pyrite damage. 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 LPT exemption for pyrite (pdf). This exemption will not be available for new applicants after 22 July 2023.

Properties built using defective concrete blocks may be exempt if they are confirmed as eligible for the Defective Concrete Blocks Grant Scheme or if the builder or an insurance company has carried out remediation work required or provided funds for it. Read more about exemption for properties built with defective concrete.

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

Registered nursing homes.

Commercial properties that are, or can be, used as a dwelling and are fully subject to commercial rates.

Properties vacated by their owners due to illness. This exemption applies to a property which you occupied as your sole or main residence but which you have not been living in for at least 12 months, due to long-term mental or physical illness. If the property has been empty for less than 12 months, it may be exempt if your doctor confirms that you are unlikely to return to the property. Up to 2021, the exemption only applied if the property was not occupied by another person. For 2022 LPT, the exemption applies if someone lives in the property and they are not a joint owner of the property. For example, they may be a tenant, relative or friend.

Property purchased, built or adapted for a person who is permanently and totally incapacitated to live there as their sole or main residence. In the case of adaptations to a property, the exemption applies if the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends at the next liability date 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).

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

Previous exemptions from Local Property Tax 2013–2021

Properties purchased in 2013 were exempt if used as your sole or main residence. If the property was subsequently sold or ceased to be your main residence between 2013 and 2020, the exemption no longer applied.

Properties that were self-built between 1 January and 1 May 2013 were exempt if used as your sole or main residence. If the property was subsequently sold, the exemption no longer applied.

Properties that were self-built after 1 May 2013 and before 1 November 2021 were not liable for LPT, even if sold again in that period.

New and previously unused properties purchased from a builder or developer between 1 January 2013 and before 1 November 2021 were exempt even if sold again in that period.

Residential properties built and owned by a builder or developer were exempt if they had not been sold and had not been used to live in.

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

Property that is not liable for LPT

Your property is liable for LPT if it is a residential property on 1 November.

If your property is not liable for LPT, you do not need to submit an LPT return.

Property that is not liable includes:

  • Commercial property that is fully subject to commercial rates and is not a residential property
  • Unoccupied property that is not suitable for living in
  • Diplomatic property
  • Mobile homes, vehicles and vessels (boats)

How to apply

To claim an exemption, you must submit your Local Property Tax return by 7 November, including the exemption you are claiming. The Revenue website lists each exemption along with information about any documentation you need to include. If you do not make a return and tell Revenue that your property is exempt, the Revenue Estimate may become payable.

Where to apply

The Revenue Commissioners

Local Property Tax (LPT) Branch

P.O. Box 1
Limerick
Ireland

Tel: +353 (0) 1 738 3626
Page edited: 11 October 2021