Property owners risk penalty of €7,230 as amnesty ends

Landlords and owners of holiday homes are being urged to settle any outstanding NPPR charges before August 31st 2014 to avoid additional late payment penalties, which could be as high as €7,230.

The Non Principal Private Residence (NPPR) charge of €200 was introduced in 2009 applied people who owned a property that was not their private residence, with exemptions allowed for mobile homes and those involved in judicial separation or divorce. It was replaced with the property tax regime last year, but not all owners of multiple properties have yet complied with the charge.

The annual charge of €200 applies for all years 2009-2013 and homeowners who have not yet paid the charge are already liable for late payment charges. For example, someone who has never paid the charge now owes €4,220, while a homeowner who missed payment in 2012 and 2013 owes €1,000.

Up until August 31st 2014, no new late payment penalties will be applied to these existing NPPR liabilities. However, if payment is not made in full by this date, or if settlement terms have not been agreed by that date, an additional late payment fee of € 120 per year will be applied on September 1st. In addition, the homeowner’s entire NPPR liability will be increased by a factor of 50 per cent and then frozen.

This means that if a property owner has never paid the charge, they will be liable for an increased fee of €7,230 from September 1st. Those missing payment in2012 and 2013 will see their penalty increase from €1,000 to €1,860. These penalties apply per property, and non-compliant owners of multiple properties will pay a multiple of these charges.

If the aforementioned penalties are not paid,a charge will be held against the relevant property for twelve years after the fees become due, and it will have to be discharged, in full, before a transfer or sale of the property can be completed.

Property owners can contact the relevant local authority to discuss or pay the charge, or alternatively any charges can be settled at www.nppr.ie.