Local Property Tax (LPT) exemptions for 2022 to 2025

Properties fully subject to commercial rates

Properties fully subject to commercial rates may be exempt from Local Property Tax (LPT). This exemption does not apply if the property is exempt from the payment of commercial rates to a local authority.

Qualifying conditions

This exemption applies where:

• a property is solely used as a dwelling
• and
• commercial rates are payable on the property to a local authority.

An example of a residential property that is fully subject to commercial rates is a guesthouse that is registered with Fáilte Ireland.

Mixed-use property

Different parts of a single property may be in use for both commercial and residential purposes. For example, a shop on the ground floor with residential accommodation overhead. LPT is due on the part of the property used as a residence if it is not subject to commercial rates.

If your property is used for both commercial and residential purposes, an exemption does not apply. You should:

• self-assess the value of the residential portion of the property
• submit your LPT Return including your valuation
• and
• make arrangements to pay your LPT charge.

Supporting documentation

You should submit supporting documentation from the relevant local authority to Revenue.

The documentation should confirm that:

• the entire building is subject to commercial rates
• and
• no allowance has been made for any residential portion.

Previous eligibility

If you claimed this exemption on your LPT Return and your circumstances have not changed, no further action is necessary for 2025.

Changes in eligibility

Once the qualifying conditions for this exemption are no longer met, the exemption will continue to apply until year-end. The property will become liable for LPT on the next liability date for the following year.

If you sell your property, and it is still subject to commercial rates, the new owner can re-apply for this exemption.

Next: Properties owned by a charity or public body