The Finance (No 2) Act 2000, which was enacted on July 5 2000, introduced a new tax known as the 'Anti-Speculative Property Tax'. In response to evidence of increased speculative demand, particularly for short-term capital gains, an annual tax of 2% on the declared value of all newly acquired residential investment properties, for which contracts are signed on or after June 15 2000, has been introduced for a three-year period. The tax is to be administered on a self-assessment basis, having regard to an annual valuation of the property.

The tax applies to residential property in the state which is acquired on or after June 15 2000 and which is not the new owner's principal private residence. The tax only applies to residential property in the state. However, if the property is in the state the tax applies irrespective of where the owner resides. Each person with an ownership interest is liable for the tax to the extent of his/her proportionate interest in the property.

For further information on this topic please contact Paul Eustace at Dillon Eustace by telephone (+353 1 6670022) or by fax (+353 1 6670042) or by e-mail ([email protected]).

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