Thomas Gould
Ceist:170. Deputy Thomas Gould asked the Tánaiste and Minister for Finance his plans to reform the Vacant Homes Tax to ensure all vacant homes will pay. [54187/26]
Amharc ar fhreagraWednesday, 15 July 2026
Ceisteanna (170)
Freagraí scríofa
The Vacant Homes Tax was introduced in 2022. It was first charged at three times a property's base Local Property Tax (LPT) charge. Subsequently, the rate of this tax increased to five times LPT then seven times LPT, as it currently stands. Following LPT revaluation last year, in which all LPT charges were increased by a small to moderate amount, VHT is expected to scale accordingly.
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.
There was a decrease in the number of properties liable for VHT between the first and second chargeable periods and a further decrease between the second and third chargeable periods. This is not unexpected, given the behavioural nature of the tax, its objective of bringing vacant residential properties into use, and the level of demand for housing in the State.
As the Deputy will be aware, I intend to introduce a new Derelict Property Tax in this year's Budget, which local authorities will have a key role in implementing. The details of this tax are being worked out at official level, with further details to be shared in due course.
Creating and introducing the new tax this year is a key priority for my Department as well as Government. It is prudent and appropriate to see how the new tax on derelict properties operates and interacts with the market as well as existing measures, before making any changes which would influence an objective assessment of its performance.
Work on the Derelict Property Tax is ongoing, with frequent engagement between my Department, the Department of Housing, Local Government and Heritage, and the Revenue Commissioners. It is hoped that this tax will paint a clear picture of the level of dereliction across our towns and cities. The data collected will help inform local and national decisions regarding long-term vacant and derelict properties.
I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of much-needed housing in the State.
Finally, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.