As the Deputy is aware, Vacant Homes Tax (VHT), announced in Budget 2023, aims to increase the supply of homes for rent or purchase to meet demand. Legislative provision for the tax was made in the Finance Act 2022. A residential property will be within the scope of VHT if it has been occupied as a dwelling for less than 30 days in a chargeable period. Further details on VHT can be found on Revenue’s website at: www.revenue.ie/en/property/vacant-homes-tax/index.aspx
VHT operates on a self-assessment basis, where the number of properties in scope and the amount of tax payable, depends on the self-assessed returns submitted by property owners; the number of properties declared as liable; and the number of property owners entitled to claim available exemptions from the tax.
I am advised by Revenue that it has undertaken significant work, including identifying an initial subset of residential properties which may come within scope of VHT. The first Vacant Homes Tax returns were due by 7 November 2023. As there was no definitive database of vacant homes in the State, Revenue developed a preliminary register of properties that were potentially in use for less than 30 days in a chargeable period. The Register was developed using data drawn from a range of sources including the GeoDirectory, the Residential Tenancies Board and ESB Networks.
In September 2023, Revenue used this register to issue correspondence to approximately 25,000 property owners who were identified as being potentially liable for VHT for the first chargeable period, 1 November 2022 to 31 October 2023, to advise them of their obligations.
6,655 properties have been declared as vacant for chargeable period 1 November 2022 – 31 October 2023. A large amount of documentary evidence was submitted to Revenue by property owners confirming that many of the properties identified as being potentially liable for VHT were in fact occupied. In February 2024, Revenue wrote to 727 property owners, identified on the LPT register as owning 20 or more properties, to confirm if any of their properties were liable to VHT.
In September 2024, Revenue issued approximately 3,697 reminders notices to property owners who declared themselves to be within the scope of Vacant Homes Tax (VHT) for the first chargeable period, 1 November 2022 to 31 October 2023. Property owners who received such correspondence from Revenue were required to confirm their property’s occupation status with Revenue by 7 November 2024, thereby determining their liability to VHT for the second chargeable period, 1 November 2023 to 31 October 2024.
3,212 properties have been declared as vacant for the second chargeable period 1 November 2023 to 31 October 2024.
In response to the VHT compliance letters that issued during the period 2023 – 2024, many property owners engaged with Revenue to confirm their property’s occupation status. 6,244 items of correspondence relating to VHT were closed by Revenue in 2023, 4,685 during 2024 and 617 to date in 2025.
Property owners are required to self-assess their liability to VHT and submit a return if they determine that VHT applies to their property, even if they do not receive correspondence from Revenue. Revenue may contact further property owners at a later date following further data analysis.
