Vacant Home Tax

Vacant Homes Tax (VHT) is a new tax introduced in 2023. It is an annual tax that will apply on 1 November each year.

First chargeable period for VHT is 1 November 2022 to 31 October 2023.

The Vacant Homes Tax will be charged at a rate equal to three times the property’s existing base Local Property Tax liability, and must be paid in addition to Local Property Tax. A small number of narrow exemptions are available to ensure that home-owners are not excessively penalised for normal temporary vacancy.

Here are the key elements you need to be aware of…

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VHT does not apply if the property if it changed ownership during the chargeable period or was exempt from Local Property Tax or was rented for at least 30 days to a registered tenant who is not related to the owner or a connected person

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Who pays the Vacant Homes Tax?

If a property is liable to VHT, it is paid by the person who pays Local Property Tax on the property. This is usually the owner.

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How much is it?

The rate of VHT on a property is 3 times the basic rate of Local Property Tax for the property. The basic rate of Local Property Tax depends on the value of the property. It was announced in Budget 2024 that the rate of VHT will increase to 5 times the basic rate of Local Property Tax for the chargeable period 1 November 2023 to 31 October 2024.


When do I need to make a tax return and what if I'm late?

If your property is liable for VHT, you must make a VHT return by 7 November 2023. If a VHT return is late, there is a 5% surcharge. If the return is over 2 months late, there is a 10% surcharge.

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Where do I make a tax return for Vacant Homes Tax?

You must make your VHT return online using Revenue’s VHT portal. You can access this by loggin onto your MyAccount, ROS or the LPT portal.

To Summarise

Steps to take in 2023

On 1 November 2023 you must determine if your residential property was vacant for any period during the chargeable period. You should review these six steps to understand what you need to do:


Step 1: Check if your property is a residential property for LPT.

Step 2: Check if VHT applies to your property.

Step 3: Check how long your property was in use.

Step 4: Check if you are eligible for an exemption.

Step 5: Submit your VHT Return.

Step 6: Confirm your payment arrangement.

As always, if your unsure of your requrements or responsibilities make sure you talk to your advisor.


John Carolan ACMA, CEO of Solve Outsource

Contact Email: john@solve.ie