# Fewer than 1% of houses liable for 'mansion tax'

Sat, Dec 8, 2012, 00:00

Q How many “mansions” are there in Ireland?Relatively few.

An estimate in the recently published expert group report on property tax indicated that just 0.04 per cent of properties were worth €1 million or more and therefore liable for what has been dubbed the mansion tax.

However, sales recorded in the property register indicate that the figure is actually higher – 0.87 per cent of properties sold in Ireland since 2010.

By either measure it appears that fewer than 1 per cent of houses are valued above €1 million.

The property tax announced in the budget will see properties valued above this level treated differently.

If your house is valued at €1 million or less, the property tax is applied at 0.18 per cent.

However, if your property is worth more than €1 million, you pay 0.18 per cent on the first million euro and 0.25 per cent on the rest.

The Property Price Register shows 20,816 properties were sold in 2010, just 194 of which fetched more than €1 million, or 0.93 per cent of all properties sold.

In 2011 and in 2012 to date, the percentage of houses that sold for more than €1 million was lower – 0.83 per cent and 0.84 per cent respectively.

Overvaluations

These figures may not be exact due to mistakes in the register, but when some obvious overvaluations are eliminated, just over three-quarters of properties liable for the tax sold for between €1 million and €2 million between 2010 and 2012 (excluding 29 properties sold for €1 million exactly and which therefore fall into the lower band).

A further 15.6 per cent sold for between €2 million and €3 million; 3.5 per cent sold for between €4 and €5 million; and the remaining 4 per cent of houses sold for more than €5 million.

When errors in top 10 valued properties are eliminated, the most expensive standalone property was 22-24 Ailesbury Road, Ballsbridge, Dublin 4, which sold for €10 million in 2011.