Commercial Rates Ireland

A Guide for Property Owners and Businesses

Commercial rates are a pivotal aspect of operating a business in Ireland, representing a local property tax levied on commercial properties by County Councils and Local Authorities. These rates are instrumental in funding essential services that support both the business community and the general public.

Understanding Commercial Rates
The amount payable in commercial rates is determined by multiplying the Net Annual Value (NAV) of a property by the Annual Rate on Valuation (ARV) set annually by the local authority. The NAV reflects the rental value of the property, while the ARV is decided during the local authority’s budget process to meet the funding requirements for public services.

Liability of Commercial Rates on Leased Property
The occupier of a property is legally liable for payment of the rates on that property during their period of occupation.

When are Commercial Rate Payments Due?
You will receive a rate demand from the appropriate local authority around February each year. Normally you will be able to pay in two payments, one in February and one in July. 

Unpaid Commercial Rates
If you fail to pay your rates by the specified period then your Rate Collector will refer the matter to for appropriate legal action. Legal action can include seeking Judgements at District Court, Circuit Court and High Court level, should a Judgement be obtained, the Local Authority will seek to use all enforcement measures available.

Revaluation Process
To ensure fairness and accuracy in the assessment of commercial rates, the valuation office Tailte Éireann periodically undertakes a revaluation of all commercial properties across Ireland. This process aims to align rateable valuations with current market conditions, ensuring an equitable distribution of the rates burden among property owners. Following a revaluation, property occupiers receive a Valuation Certificate detailing the new NAV, which serves as the basis for calculating future rates.

Appealing a Valuation
If a ratepayer believes that their property’s valuation does not accurately reflect its market value, there is a provision to appeal the assessment. An appeal can be lodged upon the publication of a new valuation list, typically every five years, or if there have been significant changes to the property, such as redevelopment or a change in use. Engaging with experienced professionals during this process can provide valuable guidance and representation, potentially leading to a more favourable outcome.

Vacant Properties and Rates Liability
Owners of vacant commercial properties may still be liable for commercial rates. However, there are circumstances under which a refund or exemption can be sought. For instance, if the property is vacant due to the owner’s genuine inability to secure a suitable tenant at a reasonable rent, or if the property is undergoing repairs or alterations, a refund may be applicable. It’s essential to provide appropriate evidence to support such claims when applying for relief.

O’Neill & Co: Your Partner in Navigating Commercial Rates
At O’Neill & Co, we specialise in offering comprehensive advice and services related to commercial rates. Our expertise includes:

• Assessment of Existing Rateable Valuations: Evaluating the fairness of current valuations and identifying opportunities for adjustments.
• Guidance on Rates Liability for New Properties: Providing insights into potential rates obligations for newly acquired or developed properties.
• Applications for Revision of Valuations: Assisting in the preparation and submission of applications for downward revisions, where justified.
• Representation in Appeals: Offering professional representation during appeals against revised valuations, including negotiations with Tailte Éireann and preparation of submissions for the Valuation Tribunal.
• Advice on Rates Liability and Exemptions: Clarifying responsibilities regarding rates payments and exploring eligibility for refunds or exemptions.

Navigating the complexities of commercial rates requires informed decision-making and strategic planning. Our team at O’Neill & Co. is dedicated to providing tailored solutions that align with your business objectives, ensuring that your commercial rates obligations are managed effectively and efficiently.

For personalised advice and assistance with your commercial rates concerns, please contact our experienced team at O’Neill & Co. on 045 856604 or read more aobut our Commercial Rates Service here