- January 29, 2025
- Posted by: Colm Hurley
- Category: News
The Non Principal Private Residence Charge) (NPPR is due to expire on the 1st April 2025. In this article, Emma Comyn, Partner and Celine Murray, Trainee Solicitor examine the current role of NPPR in residential sales and what the expiry of the NPPR will mean for vendors of residential property in the future.
What is NPPR?
The Non-Principal Private Residence Charge (NPPR), as introduced under the Local Government Charges Act 2009, was an annual charge which operated from 2009-2013. It applied in respect of any additional residential properties, situated in Ireland, which were not a property owner’s primary or sole residence such as holiday homes or investment properties. other non-principal private residences. Although the charge was ultimately discontinued after 2013, it has still played a role in the sale of residential properties in Ireland until now.
Role of NPPR in Residential Sales
Presently, when a person sells a residential property in Ireland, they are required to furnish a Certificate in respect of NPPR from their local authority.
Prior to 2021, if the residential property being sold was not the homeowner’s main residence for any year between 2009-2013, the vendor was required to furnish a Certificate of Discharge in respect of NPPR to the purchaser to show that the charge had been paid. Any NPPR charges or late payment fees due on a residential property had to be discharged in full before a transfer or sale of the property could be completed.
However, even if the residential property being sold was a homeowner’s main residence for any year between 2009-2013, the vendor was still under an obligation to furnish a Certificate of Exemption in respect of NPPR to the purchaser to prove that this charge was not applicable to them.
Phased Expiry of NPPR
In 2021, the Department of Housing, Local Government and Heritage advised that there would be a phased expiry of the NPPR charge and late payment fees. The NPPR charge and its late payment fees for each year would only be payable for a period of 12 years, meaning that the NPPR charge for a particular year would become statute-barred exactly 12 years after it first became due.
Accordingly, since the 1st August 2021, the amount of NPPR fees and penalties payable by a vendor selling their property has reduced every year as follows:
- NPPR charge for 2009 (€2,070) which expired after the 31st July 2021
- NPPR charge for 2010 (€1,830) which expired after the 31st March 2022
- NPPR charge for 2011 (€1,470) which expired after the 31st March 2023
- NPPR charge for 2012 (€1,110) which expired after the 31st March 2024
- NPPR charge for 2013 (€750) which will expire after the 31st March 2025
Consequently, the NPPR charge will expire completely from the 1st April 2025 (which will coincide with the repeal of the Local Government Charges Act 2009 from the 31st March 2025). This means that from the 1st April 2025, vendors will no longer be obligated to provide a Certificate of Discharge or Exemption in respect of NPPR in order to sell their residential property.
Furthermore, vendors who are selling residential property (which was not their primary residence between 2009-2013) will no longer be under pressure to discharge large sums to satisfy the NPPR charge and any additional late fees in order to complete the sale. This is especially beneficial where the vendor may already be liable for LPT payments in respect of that property. Therefore, the expiry of NPPR on the 1st April 2025 is a positive change which should be welcomed, as it will ultimately streamline the sale process of residential houses.
For more information on NPPR charges, please contact our Property Team.