Rory Hearne (Dublin North-West, Social Democrats)
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475. To ask the Minister for Finance to estimate the expected revenue yield from vacant homes tax if the local property tax multiplier was increased to 10 and 12 respectively; and if he will make a statement on the matter. [44438/25]

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 residential properties to bring those properties back into use.

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. Each chargeable period commences on 1 November and ends on 31 October of the following year.

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) charge.

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 charge, 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 July 2025, approximately 3,306 properties have been declared as vacant, with exemptions claimed in respect of approximately 1,014 of these properties. Approximately 2,292 properties have a liability to VHT, amounting to €2.2 million.

For the second chargeable period, VHT was charged at five times the basic rate of LPT for 2024. If the VHT rate was charged at 10 times LPT, it is estimated to yield approximately €4.4 million. If the rate of VHT was calculated at 12 times LPT, it is estimated to yield approximately €5.28 million.

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

Rory Hearne (Dublin North-West, Social Democrats)
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476. To ask the Minister for Finance the means by which he intends to bring more vacant homes liable for the vacant property tax; and if he will make a statement on the matter. [44439/25]

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 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. The tax 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. Each chargeable period commences on 1 November and ends on 31 October of the following year.

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.

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

There was a decrease in the number of properties liable for VHT between the first and second chargeable periods. This is not unexpected, given the behavioural nature of the tax, the increase in the rate between the first and second chargeable periods, the tax's objective of bringing vacant residential properties into use, and the level of demand for housing in the State. Revenue further advises that the number of properties liable for VHT may continue to fluctuate as property owners continue to file returns.

In addition, the VHT is part of a broad suite of measures introduced to address vacancy under Pathway 4 of the Housing for All plan. Initiatives such as the Vacant Property Refurbishment Grant and Ready to Build Scheme, under the Croí Cónaithe Towns Fund, provide financial incentives for people to buy and refurbish vacant properties and sites. The Repair and Leasing and Buy and Renew Schemes support Local Authorities in leasing or buying vacant properties from owners to assist in the provision of social housing. The CPO Activation Programme was introduced as a proactive and systematic approach by local authorities in identifying and engaging with vacant and derelict properties, with the aim of bringing such properties back into use through various means, including through use of compulsory purchase powers.

Other actions to tackle vacancy include funding full-time vacant homes officers in every Local Authority; allowing exemptions to planning permissions to convert vacant commercial premises to residential use; and enhancing the Nursing Homes Support/Fair Deal Scheme to incentivise the productive use of vacant homes.

My Department continues to monitor all aspects of the property market and I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources, and assist with boosting the supply of much-needed housing in the State. As with all taxes, my Department and the Revenue Commissioners will monitor the VHT. If changes to the tax are merited in due course, I will make these changes.