Irish government approves holiday home tax

The Irish government has approved plans to introduce an annual charge for owners of holiday homes throughout the country. The €200 levy is expected to come into effect in the next few months.

Legislation can now be drafted that will allow local authorities to introduce the charge, according to the Press Association. The levy will affect owners of self catering holiday cottages in Ireland as well as those with other non-principal residences in the country.

However, the charge will not be levied on new houses that have yet to be sold or on overseas properties owned by Irish citizens. It is thought that the charge will generate €40m for the Irish government per year. The revenue will be collected by local authorities and be used to fund services in the locality.

Estimates suggest that the new legislation will apply to up to 200,000 properties. Owners who fail to declare eligible properties are likely to be fined.

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