Local Property Tax (LPT) is an annual self-assessed tax charged on the current market value of all residential properties in the State.
This is a charge to the property owner, not the tenant, unless:
- you have entered into a lease in excess of 20 years, or
- you have an exclusive right of residence in a property for life, or
- for a period of 20 years or more, or
- hold a life interest in a property.
Revenue will write to residential property owners enclosing an LPT Return and a detailed guide to Local Property Tax. The guide is to provide information on how to assess the value of your property and calculate your LPT on your property. It will also explain your payment options and how to make your return to the Revenue Commissioners. If you have not received a letter from the Revenue this doesn’t mean you are one of the lucky ones and don’t have to pay. You must contact the Revenue. There is no avoiding the Local Property Tax, unless you qualify for an exemption. If you have not received a letter and do not pay this tax it will be spotted later on down the line, when a property is sold, transferred or inherited.
Important dates for payment of LPT 2020
1 November 2019 – Liability date: if you own a residential property on 1 November 2019, you are liable to pay LPT in 2020
1 January 2020 – Latest date if paying your LPT by cash, cheque , credit or debit card
21 March 2020 – Single Debit authority Payment deducted
15 January 2020 – Commencement of direct debits in equal instalments
Who is liable to pay LPT?
If you own a residential property in the State, including a rental property, you are liable to pay the Local Property Tax (LPT).
Revenue have set out that the following categories of persons are liable to pay LPT:
•Owners of Irish residential property, this includes people who live abroad and own Irish Residential property. If there more than one owner of the property, the owners will need to agree who will make the relevant LPT Return and discharge the tax. If it is not paid, the Revenue can proceed to collect the tax due from any of the owners, which includes the default collection method as set out below.
•Landlords who own property which is rented under a short-term lease (for less than 20 years).
•Local authorities or social housing organisations that own and provide social housing.
•Lessees who hold long-term leases of residential property (for 20 years or more).
•Holders of a life-interest in a residential property.
•Persons with a long-term right of residence (for life or for 20 years or more) that entitles them to exclude any other person from the property.
•Personal representatives of a deceased owner (e.g. executor/administrator of an estate). •Trustees, where a property is held in a trust.
•Where none of the above categories of liable person applies, the person who occupies, or receives rent from, the property is the liable person.
The Revenue Commissioners have stated that LPT is a self-assessed tax, and if you are liable to pay you must complete and submit the Return, calculate the liability and pay any tax due. Property owners should note that LPT is not deductible from rental income when calculating profit for income tax purposes at the end of the year.