As of 01/08/2021, it has been confirmed that the obligation to ensure that this charge has been paid is to be phased out
The Non-Principal Private Residences charge, otherwise known as the NPPR charge, is a local authority charge which affects the sale of properties that are not the principal private residences of the Vendor. It was brought into law by the Local Government (Charges) Act 2009, and imposed an obligation on the owners of such properties to discharge a bill of €200.00 per year between the years 2009 to 2013 to the relevant local authority, which would be dictated by the location of the property itself. Vendors of any residential property in Ireland have also been obliged to show either that the charge did not apply to the property during the requisite time period or that the required fees had been discharged. This would be shown by either obtaining a Certificate of Exemption or Certificate of Discharge from NPPR. This was necessary as Section 7 of the Local Government (Charges) Act 2009 confirmed that any non-payment or charge that remained unpaid would remain as a charge on the property.
However, as of 1st August 2021, it has been confirmed that the obligation to ensure that this charge has been paid is to be phased out over a set time period. There has been a maximum figure owing in fees and penalties of€7,230.00 for the entire time period, which was separated over the relevant years as below:
· 2009 (€2070 due)
· 2010 (€1830 due)
· 2011 (€1470 due)
· 2012 (€1110 due)
· 2013 (€750 due)
This is to be phased out on a yearly basis, so as per each date below, the requirement to demonstrate payment of the charge for that year will expire:
· 2009 (€2070 due) expires after 31July 2021,
· 2010 (€1830 due) expires after 31March 2022,
· 2011 (€1470 due) expires after 31March 2023,
· 2012 (€1110 due) expires after 31March 2024, and
· 2013 (€750 due) expires after 31March 2025.
From a Vendor's point of view, the requirement to furnish Certificates of Exemption/Discharge of NPPR for particular years as referred to above will also be phased out gradually, only requiring certificates relating to the charges that will remain liable at the time of sale.
NPPR as a whole will not be payable after 31st March 2025 and the Local Government (Charges) Act 2009 will also be abolished on that date.