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Budget 2023 – Property Updates

Adam Duggan



On the 27 September 2022, Minister for Finance Paschal Donohoe and the Minister for Public Expenditure and Reform, Michael McGrath presented Dail Eireann with the budget for 2023.
During his speech to the Dail, Minister Donohoe noted that the Budget 2023 is and must be, a "cost-of-living budget", focused on helping individuals, families and businesses to deal with rising prices. Minister Donohoe also informed the House that a General Government surplus of €1 billion, or just under ½ per cent of national income this year, and €6.2 billion or 2¼ per cent next year will be registered. However, Minister Donohoe went on to note that this surplus should be used wisely. 

In terms of property and housing, the following measures were outlined: 

Help-to-Buy: This Scheme will continue at current rates until the end of 2024. The Scheme is intended to assist with the deposit for a first time buyer of a new house, apartment or a self-build, which the applicant must live in as their home. 

Rental Tax Credit: A new rent tax credit valued at €500.00 per year is being introduced. The measure will apply for 2023 and subsequent tax years but it may also be claimed in respect of rent paid in 2022. An individual can claim one credit per year. However, the value of the credit will be doubled in the case of married couples and civil partners.

Pre-Letting Expenses: The amount a landlord can claim for pre-letting expenses will double to €10,000 and the amount of time the property must be vacant for has reduced from 12 months to 6 months. 

Vacant Homes Tax: A Vacant Homes Tax will be introduced and will apply to residential properties that are occupied for less than 30 days in a twelve-month period. This tax will be charged at a rate equal to three times the property’s existing basic Local Property Tax rate.

Residential Zoned Land Tax: Originally announced in 2022, this will be an annual tax that will apply to land zoned as being suitable for residential development. Maps are currently being prepared by Local Authorities that will identify suitable land. The budget intends to streamline the operation of the tax and ensure it is efficiently administered.

Residential Development Stamp Duty: The Residential Development Stamp Duty Refund Scheme is extended to the end of 2025. This Scheme allows for a portion of the stamp duty paid on the acquisition of non-residential land to be refunded where that land is subsequently developed for residential purposes.

Written by: Adam Duggan

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Real Estate