Exemptions

Certain properties will be exempt from Local Property Tax (LPT) if they meet the relevant qualifying conditions. Mobile homes, vehicles, vessels (boats) and diplomatic properties are also not liable for LPT.

When LPT was introduced in 2013, property owners who qualified for an LPT exemption were required to claim the relevant exemption by filing an LPT Return. In most cases a residential property that was exempt from LPT on 1 May 2013 continues to be exempt until the end of the current valuation period (31 October 2016), even where the property is sold or ownership is transferred by way of gift or an inheritance.

If you did not previously qualify for an LPT exemption but now qualify, you should claim the exemption by writing to the Revenue Commissioners, LPT Branch, P.O. Box 1, Limerick and providing details of the exemption being claimed, your name, Property ID, Property address and your PPSN or tax reference number.

LPT Exemptions:

  1. New and previously unused residential properties purchased from a builder or a property developer between 01/01/2013 and 31/10/2016.
  2. Certain residential properties purchased in 2013.
  3. Residential properties constructed and owned by a builder or developer that remain unsold.
  4. Residential properties situated in a specified unfinished housing estate.
  5. Residential properties owned by a charity or a public body and used to provide special needs accommodation.
  6. Residential properties used by a charity in connection with recreational activities.
  7. Registered Nursing Homes.
  8. Residential property vacated for an extended period by a person with a long term mental or physical infirmity.
  9. Residential properties fully subject to commercial rates.
  10. Residential properties that have been certified as having significant pyritic damage.
  11. Residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence.

Further information on LPT exemptions is available at:

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1. New and previously unused residential properties purchased from a builder or a property developer between 01/01/2013 and 31/10/2016

New and previously unused properties that are purchased from a builder or developer between 1 January 2013 and 31 October 2016 will be exempt until the end of 2016. The property must be purchased from a builder or a property developer who constructed the property, or who arranged to have it constructed, as part of a trade carried on by that person.

2. Certain residential properties purchased in 2013

Properties purchased between 1 January 2013 and 31 December 2013 will be exempt for the purchaser until the end of 2016, if the purchaser occupies the property as their sole or main residence. Although it was originally intended that this exemption would only apply to first-time buyers, any person who purchased a second-hand property in 2013 and occupies it as their sole or main residence is entitled to this exemption. The exemption also applies where a property is built by, or for, the person who is to live in it. It is not necessary that a loan is taken out to finance the purchase or construction of a property for the exemption to apply.

If the property is subsequently sold or ceases to be the person’s main residence between 2013 and 2016, the exemption no longer applies.

Further information, including step-by-step instructions on how to claim the exemption online are available at: Claiming an exemption for a second-hand property purchased in 2013 by a non-first time buyer.

3. Residential properties constructed and owned by a builder or developer that remain unsold

This exemption applies to properties constructed and owned by a builder or developer (as part of their building or property development trade) that remain unsold and have not yet been used as a residence. The property must not have generated an income that would be subject to income tax or corporation tax.

4. Residential properties situated in a specified unfinished housing estate

This exemption applies to properties in unfinished housing estates (commonly called "ghost estates"), specified by the Minister for the Environment, Community and Local Government in the pdf Finance (Local Property Tax) Regulations (S.I. No. 91 of 2013)External link (PDF, 1.37MB).

Further details are included in the press releaseExternal link issued by the Department of the Environment, Community and Local Government. Maps are available for viewing on the website of the relevant local authority. A full list of local authorities is available on the website of the Department of the Environment, Community and Local GovernmentExternal link .

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5. Residential properties owned by a charity or a public body and used to provide special needs accommodation

This exemption applies to residential properties owned by a charity or a public body and used to provide accommodation and support for people who have a particular need in addition to a general housing need to enable them to live in the community such as sheltered accommodation for the elderly or the disabled. A "charity" must be granted an exemption for tax purposes by the Revenue Commissioners to avail of this exemption. pdf Guidelines for the Assistance of Social Housing Providers in Identifying Special Needs Accommodation (PDF, 176KB) are available on the Revenue website.

6. Residential properties used by a charity in connection with recreational activities

This exemption applies to properties used by charitable bodies as residential accommodation in connection with recreational activities that are an integral part of the body’s charitable purpose, e.g. guiding and scouting activities.

7. Registered Nursing Homes

This exemption applies to nursing homes which are used exclusively for the care of individuals who have been medically certified as suffering from a long-term mental or physical infirmity. The nursing home must be registered under section 49 of the Health Act 2007.

This exemption only applies to the nursing home itself and does not extend to any residential units associated with the nursing home.

8. Residential property vacated for an extended period by a person with a long term mental or physical infirmity

This exemption applies to a property previously occupied by a person as his or her sole or main residence that has been vacated by the person for 12 months or more due to long term mental or physical infirmity. It is not necessary that the infirm person be elderly. An exemption may also be obtained where the period is less than 12 months, if a doctor is satisfied that the person is unlikely at any stage to return to the property. In both cases, the exemption only applies where the property is not occupied by any other person.

If the person recovers sufficiently and moves back into his or her home the exemption will continue to apply until the end of the current valuation period (31 October 2016).

Note: Where there is more than one liable person in relation to a property, for example, where the property is jointly owned, all of the liable persons must meet the conditions required for the exemption.

9. Residential properties fully subject to commercial rates

This exemption applies where a property is solely used as a dwelling and commercial rates are payable on the property to a local authority. For example, guesthouses that are registered as such with Fáilte Ireland would be eligible for this exemption because they are fully subject to commercial rates.

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10. Residential properties that have been certified as having significant pyritic damage.

This exemption applies to residential properties that have been certified as having significant pyritic damage. In these cases the properties will be exempt for a temporary period of approximately three years.

Regulations have been made by the Minister for Environment, Community and Local Government ( pdf Finance (Local Property Tax) (Pyrite Exemption) Regulations 2013 - S.I. No. 147 of 2013External link (PDF, 132KB) ) stipulating how properties are to be tested to establish whether they have been affected by a significant level of pyrite-induced damage and providing for the issue of certificates by a competent person where this has been established.

  • The LPT exemption cannot be claimed until such time as the property has been assessed and a certificate confirming "significant pyritic damage" has been issued by a competent person, such as an engineer.
  • To claim the exemption the property owner should apply in writing to the LPT Branch, PO Box 1, Limerick, providing the pdfrelevant certificate (PDF, 42KB), their name, address, PPSN and the Property ID.
  • The exemption applies from the first liability date following the issue of the certificate. It is the date of the certificate and not the date of the claim for the exemption that determines when the exemption first starts from.
  • Further information, including MS WordFrequently Asked QuestionsExternal link (MS Word, 52KB) are available on the website of the Department of the Environment, Community and Local Government.

11. Residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence.

This exemption applies to residential properties purchased, built or adapted to make them suitable for occupation as a residence by a permanently and totally incapacitated individual. This is an individual who is permanently incapacitated to such an extent that they are unable to maintain themselves by earning an income from working and whose condition is so severe that it dictates the type of property that they can live in.

The LPT legislation requires that the incapacitated individual must have received an award from the Injuries Board or a court or that a trust had been established specifically for the benefit of the individual. This requirement was removed by the Minister for Finance in May 2014. Revenue has prepared detailed guidelines on the new arrangements which will be applied retrospectively to 1 July 2013, on an administrative basis. For further information please see: Extension of Reliefs for certain Disabled / Incapacitated Individuals.

In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted.

Applications for the exemption should be made on pdf Form LPT7 (PDF, 1.61MB) or, where the application concerns a permanently and totally incapacitated child for whom the Department of Social Protection pay a Domiciliary Care Allowance Form pdfLPT8 (PDF, 1.96MB) should be completed. Applications should be sent to the Revenue Commissioners, LPT Branch, PO Box 1, Limerick.

Note: If your property previously qualified for this exemption and you claimed it when filing your 2013 LPT1 Return, no further action is required.

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January 2015


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