Government to Introduce Derelict Property Tax Collected by Revenue

Overview

• Tánaiste Simon Harris announced on Sunday that the new Derelict Property Tax will be brought forward in the Finance Bill and that he will update Cabinet on plans on Tuesday.
• The tax will first apply in 107 urban areas with populations of 4,000 or more and will later expand to 64 towns of 2,000 or more, covering 171 locations in total.
• The new charge replaces the existing derelict sites levy and will not be set lower than the current 7% of a property’s market value.
• Revenue will collect the tax while local authorities will keep derelict property registers and identify qualifying sites, and officials are drafting rules on exemptions, appeals and ownership verification ahead of legislation.
• Government estimates put about 19,438 residential derelict properties at the end of 2025, and ministers say the aim is to force owners to repair or return buildings to use rather than to raise revenue which they say local councils failed to enforce.