Commercial Rates

Commercial Rates are a property-based charges on commercial and industrial properties and are a key source of income for Local Authorities.

What are Commercial Rates?

Commercial Rates are a property-based charges on commercial and industrial properties and are a key source of income for Local Authorities. Commercial rates form approximately 35% of Galway City Council's income in 2024. The income generated from Commercial Rates underpins the entire range of services provided within Galway City, such as:

  • Public Lighting
  • Street Cleaning and anti-littering initiatives
  • Roads and Footpath Upkeep
  • Fire Service
  • Maintenance and regeneration of Parks, recreational facilities and open spaces
  • Facilities for cultural and sporting activities
  • Conservation work and promotion of environmental awareness
  • Libraries
  • Local economy supports

The levying and collection of commercial rates by Local Authorities is legislated for under the Local Government Rates and Other Matters Act 2019, as amended by the Historic and Archaeological Heritage and Miscellanous Provision Act 2023. This legislation came into effect on 1st January 2024.  

Who can be held liable for Commercial Rates?

The person liable for Commercial Rates is the person in actual occupation at the making of the rate for the year. If there is a change in occupation during the year, then the rates are liable on a pro-rata basis between the relevant occupiers. 

How are Commercial Rates Calculated?

Commercial rates are calculated by multiplying the ‘Rateable Valuation’ of your property by a multiplier called the ‘Annual Rate on Valuation’ (ARV). 

Rateable valuations are determined independently by the Commissioner of Valuation in Tailte Éireann, not by the Local Authority, and set out in a Valuation List.

The ARV is determined by the elected members of the Council at the annual budget meeting each year, based on the shortfall between the cost of providing all services and the Council income.

The Annual Rate on Valuation for 2024 is 0.217.

For example:

If your property has been valued at €50,000 by Tailte Éireann, then your Commercial Rates bill for 2024 will be

€50,000 x 0.217 (ARV for 2024)= €10,850

Disclaimer:

The Rates Calculation provided above gives you a sample rates liability for 2024.

Who can I contact regarding my Commercial Rates Demand?

Please contact Commercial Rates by email or telephone regarding your current Rates Demand:

How do I pay my Commercial Rates?

Your rates for 2024 are due in full on 1st January 2024, and include any arrears carried forward from previous years. 

Commercial Rates can be paid in the following ways:

  • Online – To Pay your Commercial Rates online please click here.

  • Direct Debit - You can pay by Direct Debit. Please complete the Direct Debit form. Payment is deducted from your nominated bank account on the 16th of each month.

    Electronic Funds Transfer (EFT) - Please note the following bank details if making payments. The Commercial Rate Account No should be used as the reference.

     

    Bank: Bank of Ireland, Eyre Square, Galway
    Account Name: Galway City Council
    Account No: 12911047
    Sort Code: 90-38-16
    IBAN: IE22 BOFI 9038 1612 9110 47
    BIC: BOFIIE2D
  • Cash office- Payments can be made by Credit or Debit card or cash via the cash office which is open 9:00am to 4:00pm, Monday to Friday and is located at City Hall, College Road, Galway. Or you can contact the cash office at 091 536400 with your account number and details about the payment
  • By Off-set (Under Section 7 of the Local Government Rates and Other Matters Act 2019 – any payment due to you by the Local Authority can be Off-set against any rates outstanding). 

What happens if I don't pay my Rates?

Galway City Council are obliged by law to levy and collect Commercial Rates on commercial/industrial property. Unpaid rates have a serious effect on our ability to deliver essential services. Legal enforcement will be pursued where necessary.

If you are having difficulties paying your commercial rates you are urged to contact your Rate Collector to discuss and agree a payment plan.  Contact details are included on the bottom of your rates bill.

Is there interest charged on arrears on Rate accounts?

This is covered under Section 12 & 14 of the Local Government (Rates and other Matters) Act 2019  –

  • Section 12 – Interest on overdue Rates: From 2026 Bills onwards there will be interest applied on bills due to any arrears on commercial rate accounts at the end of 2025.  Mayo County Council strongly encourage all ratepayers to enter into payment schedules that seek to clear their commercial rate liabilities by the 31stDecember annually.
  • Under Section 14 of the Act,– Unpaid Rates to be a charge on the Relevant Property:  Any rates and accrued interest which is due and payable in respect of a property by an owner in their capacity as a liable person remains a charge on the property.

Can I have my valuation revised?

If you believe your Rateable Valuation is incorrect, you can submit a request for re-assessment to Táilte Éireann. An application for Revision may result in a valuation increasing, decreasing or staying the same.  All applications for a revision of valuation must be accompanied by a fee of €250.

For further information, please visit Home - Tailte Éireann.

What happens with Rates when I am selling or vacating my property?

Under Section 13 of the Local Government (Rates and Other matters) Act 2019,  a liable person is required to pay to the local authority any rates and accrued interest which is due and payable in respect of that property in their capacity as a liable person on or before the completion of the sale. The penalty for contravening this requirement, without reasonable excuse, is being guilty of an offence and being liable, on summary conviction, to a Class A fine or imprisonment for a term not exceeding six months or both. A Class A fine is a fine not exceeding €5,000.

Please contact rates@galwaycity.ie and send through the relevant Section 11 Form within 10 days to advise of any such change.

What happens if there is a Change of Occupant mid-year?

The liable persons of Commercial Properties are now obliged to notify the Local Authority, within 10 days of the transfer date, where there is a change in occupation of their property, i.e. when there is a change in tenancy or where a property is being sold, including where a property becomes vacant. The person transferring the property, either the owner or occupier are legally required to discharge all commercial rates for which he/she is liable at the date of transfer.

Always ensure you complete a Section 11 Form and return to Rates@Galwaycity.ie within 10 working days of any transfer.

Are Rates payable on vacant property?

Yes, from January 2025, Landlords will be liable for 70% of the total Commercial Rates due in respect of their vacant commercial premises, provided that it can be shown that the property is vacant due to one the following reasons:-

  • The bonafide inability of the landlord to obtain a suitable tenant at a reasonable rent
  • The execution of repairs/alterations
  • Vacant due to demolition or redevelopment.

Rates must be paid in full for the period claimed, and where there is a sum due to Galway City Council by the applicant under any enactment, at the point when the refund is to be paid, then the Local Authority are empowered to set-off the monies from the refund against this debt. (This is in accordance with Section 7 of the Local Government (Financial Provisions) (No.2) Act, 1983.

Full commercial rates are liable in respect of vacant commercial properties unless a fully completed application form for the 30%% reduction is made. In the event of non-payment, the City Council will have recourse to legal action.    

I have just opened a business. What rates do I pay?

This depends on whether it's a newly constructed property or an existing rated property.

Newly constructed premises will require a valuation from Tailte Éireann before Rates become payable. This involves an inspection of the premises by one of their qualified Valuers following which you will be notified of the proposed valuation. There is an appeal procedure should you wish to avail of it. Section 21 of the Local Government Rates and other Matters Act 2019 is now enacted and provides that properties are liable for Commercial Rates from the date they are listed by Tailte Éireann.  This change came into effect on 1st January 2024.

If you are taking over an existing rated property, then you will be liable for the existing Rates applicable to the premises.

We recommend that if you are opening a new business, that you contact the Rates department of Galway City Council to discuss the rates for your premises.

I have closed my business. Is the property still liable for Rates?

Yes, rates are payable on all valued commercial/industrial property. However where such a property becomes vacant, in 2024 the owner is liable for 70% of the Commercial Rates due for the vacant period, provided it can be shown that:

  • (1) the property was available for letting or,
  • (2) the property was undergoing alteration, renovations or repairs,
  • (3) Property was vacant due to demolition or redevelopment.

Full Commercial rates are liable in respect of vacant properties unless a fully completed application form for the 30% reduction is made.

          Application for Refund of Rates on Vacant Properties at 36.5% in 2022          

I am leasing premises, who pays the Rates? The Owner or Myself?

The occupier of a premises is legally liable for payment of Rates on the premises.

I am taking over a premises - What should I do about the Rates?

It is very important to check with the Rates Section that all rates are paid up to date; to find out the rates liability on the premises, and methods of payment available for payment of same.