10 August 2009. Purchasers of investment residential properties in Ireland in the future could find themselves liable for any unpaid €200 property levies, according to the Institute of Professional Auctioneers & Valuers. IPAV Chief Executive Fintan McNamara said Section 7 (1) of the Local Government (Charges) Act, passed through the Houses of the Oireachtas before the summer recess, imposes the charge on the property and not the individual. “You could, for example, have an investor selling a property in say a few years time and did not pay the charges,” he said. “The new purchaser will be liable for same if they are not paid. In future years this could add up to many hundreds of euro.” Mr McNamara said this can be avoided by obtaining proof from the relevant local authority that the charges have been paid before signing the contract. “This is another example where the onus is left on the investor and is yet another imposition on an already hard-pressed sector,” he said. He called for an amendment to be made in the next Budget which would place the imposition on the seller of an investment property to ensure all charges are paid before the contract becomes valid. The Department of the Environment, Heritage & Local Government estimates that the new levy, to be collected by local authorities, will generate up to €40m in revenue from an estimated 200,000 second homes around the country. The new tax will apply to houses that are rented and holiday homes but not mobile homes. Properties are exempt if they are rented out as part of the RAS (Rental Accommodation Scheme) or rented to the HSE or leased to a housing authority. Ends |