The Irish Government has announced a new €200 property tax aimed at owners of non-principal private residences purchased for rental and investment purposes.

The Minister for the Environment, John Gormley said owners of residential rental property, holiday homes and vacant residential properties will be subjected to the charge which is designed will raise an estimated €40 million for local authorities.

Approximately, 260,000 homes will be impacted by the tax, the majority which will be investment properties, such as buy to lets. However, some 60,000 holiday homes will also be affected.

There are a number of exemptions, those who have temporary ownership of a second home for a short period while moving house or for those who own newly constructed and unsold properties will not be impacted by the tax.