Séamus McGrath (Cork South-Central, Fianna Fail)
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372. To ask the Minister for Finance the level of compliance activity in relation to the vacant homes tax; the number of cases of default that have been established; the value of penalties that have been applied in total; the average amount per property collected on the tax in 2023 and 2024; and if he will make a statement on the matter. [39647/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Vacant Homes Tax (VHT) was announced in Budget 2023 and legislated for in Finance Act 2022. The main objective of this tax is to increase the supply of homes for rent or purchase by encouraging the owners of vacant, habitable, residential properties to bring those properties back into use. A residential property will be within the scope of the tax 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.

VHT was charged at three times a property’s base local property tax (LPT) charge in respect of the first chargeable period (1 November 2022 – 31 October 2023), and at five times a property’s base LPT charge in respect of the second chargeable period (1 November 2023 – 31 October 2024). VHT currently applies at a rate of seven times a property’s base LPT charge with effect from 1 November 2024. Further details on VHT can be found on Revenue’s website at: www.revenue.ie/en/property/vacant-homes-tax/index.aspx

As there was no definitive database of vacant homes in the State prior to the tax’s introduction, Revenue undertook significant work to develop a preliminary register of properties that were potentially in use for less than 30 days in a chargeable period and potentially within scope of VHT. This register was developed using data drawn from a range of sources, including the GeoDirectory, the Residential Tenancies Board and ESB Networks.

A formal compliance campaign for VHT has not yet taken place to identify cases of default. However, Revenue continues to develop the register of properties. In February 2024, Revenue wrote to a further 727 property owners, identified on the LPT register as owning 20 or more properties, to confirm if any of their properties were liable to VHT. Additionally, in September 2024, Revenue issued approximately 3,697 reminders notices to property owners who declared themselves to be within the scope of VHT for the first chargeable period. Property owners who received such correspondence from Revenue were required to confirm their property’s occupation status by 07 November 2024, thereby determining their liability to VHT for the second chargeable period. In response to the VHT reminder notices that issued during 2024, 3,212 properties have been declared as vacant for the second chargeable period.

Furthermore, many property owners engage with Revenue to confirm their property’s occupation status. 6,244 items of correspondence relating to VHT were closed by Revenue in 2023. A further 4,685 items were closed during 2024, while 617 have been closed to date in 2025.

The average VHT collected per property in 2023 and 2024 is €590 and €970 respectively. Additional statistics in relation to VHT are published on Revenue’s website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/property-taxes/yearly-stats/2025/index.aspx