Tag Archives: property tax

First time buyers are exempt from property tax until 2016!

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First Time Buyers: Pay no property tax until 2016 if you buy before the end of 2013!

First time buyers who purchase a property in 2013 will not have to pay the property tax until the end of 2016. The incentive is to replace the Mortgage Interest Relief scheme which ended December just gone. This means that anyone who buys a home before the end of this year will spare themselves 3 and half years property tax charges. And the savings over that period of time are significant.

The tax will be levied at 0.18% of the properties value. The Revenue has devised 20 valuation bands for the purposes of calculating how much owners will pay from the 1st July 2013. The lowest band starts at properties valued under or at €100,000. Then each of the subsequent 19 bands is split into €50,000 tranches up to €1 million.

As 85% to 90% of homes liable for the charge are within the first five bands (up to €300,000), most homeowners are going to pay up to €500 for a full year. This means that a first time buyer who purchases a home before the end of 2013 could save up to €1,750 by not having to pay property tax until 2016.

If you wish to get the most out of the property tax exemption, now is the time to apply for a mortgage – and our mortgage advisors are here to help you get the best deal on your loan. Applying is so easy: you can make a formal application online or request a call back. We’re also just a phone call away if you want to have a chat with our mortgage advisors now on 1890 746 759.

Revenue to advise on house values for upcoming property tax

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Letters from the Revenue about the upcoming property tax will be sent to homes up and down the country outlining how much they think home owner properties is worth. These notices which will be posted out within the next few weeks will also state how much they should pay in property tax. However, anyone liable to pay the tax will be able to assess the value of their own home – but this freedom will not give free license for property owners to give any value to their home.

When the Government announced that the charges for the property tax would be based on self-assessed valuations, concerns immediately rose over people undervaluing their property in order to pay the least amount possible. Therefore, the Revenue is insisting that people use their “indicative value” or the figure they deem the property to be worth in their assessments.

Indeed, those who are seen to use figures much lower than the Revenue’s will be subject to inspection and fines, but those using the Revenue’s valuation will not face any investigation. Figures issued by the taxman will take into account a range of criteria such as the location of the property, its overall condition and improvements made. There will be some scope by the Revenue to adjust its initial valuation downwards if the house is not in good condition.

Homeowners should expect to receive these letters in March and will have to return the assessment forms by post before the 7th May 2013 or the 28th May 2013 if the assessment is submitted through the Revenue website. The property tax will come into effect on the 1st July and will be levied at a rate of 0.18% of house value. For 2013, owners will only have to pay for a half-year but will have to pay for a full year for subsequent years. However, first time buyers who buy a house before the end of 2013 will be exempt from paying property tax until 2016.