Properties fully subject to commercial rates

Properties which are fully subject to commercial rates may be exempt from Local Property Tax (LPT).

This exemption applies where:

  • a property is solely used as a dwelling
  • and
  • commercial rates are payable on the property to a local authority.

An example is a guesthouse that is registered with Fáilte Ireland. The guesthouse would be eligible for this exemption if it is fully subject to commercial rates.

A property may be in use for both commercial and residential purposes. LPT is due on the residential portion if it is not subject to commercial rates. If you own such a property, you must file a LPT Return for the residential portion and pay any LPT due. 

For example, if there is a commercial unit on the ground floor and a residential unit on the upper floor, the residential unit is liable for LPT. LPT is due even if the property is vacant.

Where an entire property is chargeable to commercial rates, Revenue requires supporting documentation from the relevant local authority. 

The documentation must confirm that:

  • the entire building is subject to commercial rates
  • and
  • no allowance has been made for any residential portion.