At Adrian Hassett Auctioneers we believe owning a holiday home in Ireland is one of life's great pleasures. Whether it is a cottage on the Wild Atlantic Way, a lakeside retreat in the midlands or an apartment in a lively seaside town, a second home offers a place to unwind, gather with family and escape the routine. But the rules around second homes and short-term letting have changed significantly, and in 2027 careful homework is more important than ever. Here are the five things we believe every buyer should consider.
1. Choose a location that works all year round
It is easy to fall in love with a place on a sunny August afternoon, but think about how the property will feel in November too. Some seaside towns are buzzing in summer and very quiet in winter, with shops and restaurants closing for the season. Consider how long it will take you to get there, as a property three hours away may see far less use than one within easy reach for a weekend. Check the broadband, especially if you hope to work remotely while you are there.
Coastal and lakeside properties can also face flood or erosion risks. The OPW's floodinfo.ie website is a useful starting point, and it is worth getting an insurance quote early, as exposed locations can be more expensive to insure.
2. Understand the full cost of ownership
Financing a holiday home is different from buying your main residence. Fewer lenders offer mortgages for second homes, and those that do generally require a larger deposit, so speak to a mortgage adviser early. First-time buyer supports such as Help to Buy are designed for a buyer's own home and will not apply to a holiday property.
Then look beyond the purchase price. Stamp duty applies at the standard residential rates, and ongoing costs include Local Property Tax, insurance, utilities, maintenance and, in holiday villages or apartment schemes, annual management fees. Sea air and empty winters can be hard on a property, so budget for regular upkeep and consider a local caretaker to check on the house when you are away.
3. Check planning conditions and occupancy restrictions
This is where many buyers are caught out. In some coastal and rural areas, houses were granted permission with occupancy conditions requiring them to be used as a permanent home, sometimes by someone with a local connection, which may prevent their use as a holiday home. On the other hand, homes in some holiday developments have conditions restricting them to holiday use only. Ask your solicitor to review the planning history and any conditions before you commit, and check the local development plan if you are considering a site to build on.
4. If you plan to let it, know the new short-term letting rules
Many owners hope to offset costs by letting their holiday home when they are not using it. Ireland now has a national short-term letting register. Anyone offering accommodation for up to 21 nights at a time is required to register with Fáilte Ireland, with a deadline of 31 December 2026, and receives a unique registration number for each unit. Registration itself is not a grant of planning permission, so you still need to make sure the property can lawfully be used for short-term letting.
Planning rules introduced in 2019 already required change of use permission for short-term letting of homes that are not ordinarily lived in by the owner in rent pressure zones, which included many holiday homes. The new regime goes further. Providers in towns with a population of more than 20,000 must confirm planning compliance when registering, and the Government's stated aim is to restrict short-term lets in those larger towns. There is, however, a presumption in favour of granting permission where a dwelling has been used continuously for short-term letting for at least seven years without enforcement action.
If you are buying a property with an existing letting business, ask for its registration number, planning status and booking history. If you are considering long-term letting instead, remember that residential tenancies carry their own rules and would limit your own use of the property.
5. Plan for tax
A holiday home can bring tax obligations that do not apply to your main residence. The Vacant Homes Tax applies to residential properties used as a dwelling for less than 30 days in a 12-month chargeable period, at a rate of seven times the basic rate of Local Property Tax. Holiday home owners who may fall close to that threshold should keep records showing when the property was used, such as utility bills and receipts.
Rental income is taxable, and when you eventually sell, Capital Gains Tax is likely to apply, as relief for a principal private residence does not normally extend to a second home. If you hope to pass the property on to your children, Capital Acquisitions Tax may also be relevant. A conversation with a tax adviser before you buy can help you structure things sensibly.
Tips for sellers
If you are selling a holiday home, have your paperwork ready. Buyers will want to see planning permission, any occupancy conditions, short-term letting registration details, booking history and a list of furniture and contents included in the sale. Clear information builds confidence and helps buyers understand the property's full potential.
The bottom line
A holiday home can bring years of enjoyment, but the right location, a realistic budget and a clear understanding of planning, letting and tax rules are essential. Do your homework before you buy, and your holiday home can be a source of relaxation rather than unexpected stress.
If you would like to discuss buying or selling a property, contact us on 0871303206 or email sales@adrianhassett.com or visit adrianhassett.com.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
