The vacant homes tax, which only collected €2m last year from just under 3,500 properties, has raised concerns about its effectiveness and practicality. Introduced in 2021, this tax applies to properties unoccupied for fewer than 30 days in the previous 12 months with the aim of increasing the availability of homes for potential buyers or renters.
Marian Ryan, business development director at Taxback.com, has expressed doubts about the effectiveness of the tax, stating that the yield was much lower than expected and may not cover the administrative costs of the Revenue Commissioners. Labour leader Ivana Bacik also highlighted the significant gap between the predicted number of eligible properties and the actual number subject to the tax, further casting doubt on its efficacy.
In response to the low yield, Finance Minister Michael McGrath increased the rate of the tax in the last Budget to five times the Local Property Tax and Revenue has created a register of vacant homes. However, with only 2,388 of the 5,856 declared vacant homes exempt from the tax, questions remain about its effectiveness in achieving its intended purpose.
In conclusion, the modest yield and significant number of exemptions have led to calls for a reevaluation of the vacant homes tax. Whether this measure can truly increase the availability of homes for potential buyers or renters remains to be seen.