Catherine Connolly (Galway West, Independent)
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415. To ask the Minister for Finance the expected revenue yield from an increase in the vacant homes tax to ten times the annual local property tax rate in a full year; and if he will make a statement on the matter. [30695/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Vacant Homes Tax (VHT) as announced in Budget 2023, aims to increase the supply of homes for rent or purchase to meet demand. Legislative provision for the tax was made in the Finance Act 2022 and states that a residential property will be within the scope of VHT, if it has been occupied as a dwelling for less than 30 days in a chargeable period.

VHT operates on a self-assessment basis, where the number of properties in scope and the amount of tax payable, depends on the self-assessed returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.

The first chargeable period for VHT commenced on 1 November 2022 and ended on 31 October 2023. VHT in respect of the first chargeable period was charged at a rate equal to three times the property’s existing base Local Property Tax (LPT) rate, which is payable in addition to LPT. The first self-assessed returns were due on 7 November 2023 and the associated tax payable on or before 1 January 2024.

The second chargeable period commenced on 1 November 2023 and ended on 31 October 2024. VHT for this period was charged at an increased rate, equal to five times the property’s existing base LPT rate, payable in addition to LPT. Returns in respect of this chargeable period were due on 7 November 2024, with the associated tax payable on or before 1 January 2025. As of April 2025, approximately 3,200 properties have been declared as vacant, with exemptions claimed in respect of approximately 946 of these properties. Approximately 2,200 properties have a liability to VHT, amounting to €2.2 million.

While it is not yet known how many residential property owners may declare their properties as liable for VHT in the third chargeable period, if the numbers remained the same as the second chargeable period, it is tentatively estimated that there would be an approximate additional yield of €2.2 million. Should the VHT rate be increased to ten times the property’s existing base LPT liability the estimated yield in the third chargeable period would be approximately €4.4m.

It should be noted that VHT returns reflect the position at a particular point in time, and the estimated additional yield does not take into account any behavioural change.

Catherine Connolly (Galway West, Independent)
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416. To ask the Minister for Finance the expected revenue yield from an increase in the residential zoned land tax to 5% of the land’s annual value in a full year; and if he will make a statement on the matter. [30696/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Residential Zoned Land Tax (RZLT) is a new tax introduced in Finance Act 2021 which seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing, rather than to raise revenue.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax is due and payable from 2025 onwards in respect of land which satisfied the relevant criteria on 1 January 2022, or in the course of 2022. The first annual liability date for RZLT arose on 1 February 2025 and the 2025 liability pay and file deadline was extended to 30 May 2025.

In relation to the Deputy's question regarding the estimated yield from increasing the rate of RZLT from 3% to 5%, I am advised that my Department does not produce revenue projections for RZLT.

I can advise that as of 9 June 2025, 1,800 Residential Zoned Land Tax (RZLT) returns have been filed, with liabilities of almost €40 million paid.