The new property tax will hit hard.
The annual cost is .018% or €180 for every €100,000 of your home's market value.A house worth €400,000 will pay annual tax of approx €720 ( half this in 2013).
If you have a house worth over €1 million you will pay .25% on the excess over €1 million.
It looks like Dublin is going to pay the lion's share of the tax.The tax is unfair and regressive and we expect it will be strongly opposed on the basis that there is no relationship with income.
There is also no distinction between somebody who has a mortagge and somebody who is mortgage free.
Given that the Revenue commissioners will collect this tax, it would be very easy to effectively means test the tax. Surely, it is completely unreasonable to charge a low income household with kids, the exact same tax as a high income household, where the kids have left.
No property tax will be paiyable by 2013 first time buyers from next year until 2017.The same exemption applies to non first time buyers buying new houses during this period.
Mortgage interest relief ceases on 31/12/2012