Government to introduce new Derelict Property Tax

The Irish government is set to introduce a new Derelict Property Tax, targeting properties in urban areas with populations of 4,000 or more. This initiative will initially cover 107 cities and towns, including major centers like Dublin, Cork, Limerick, and Galway, as well as several smaller towns. The plan is to expand the measure in a second phase to an additional 64 towns with populations of 2,000 or more, bringing the total number of affected locations to 171.

Tánaiste and Minister for Finance Simon Harris will present the plans to the Cabinet, with the tax expected to be included in the Finance Bill later this year. This new tax will supersede the existing derelict site levy, which is currently set at 7% of a property's market value. The rate for the new tax will not be lower than this current figure.

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The primary objective of the measure is to support the revitalisation of communities by bringing long-term derelict buildings back into productive use.

The primary goal of this tax, according to Minister Harris, is to revitalize communities by encouraging the return of long-term derelict buildings to productive use. He emphasized that the measure's success will be gauged not by the amount of tax collected, but by the number of properties that are successfully restored and the creation of new homes. Revenue will administer the tax, while local authorities will manage derelict property registers and identify eligible properties.

Officials are currently finalizing the detailed design of the scheme, which includes provisions for exemptions, appeals, and ownership verification, ahead of the legislation's introduction later this year. Latest estimates from the end of 2025 indicate that there were approximately 19,438 residential derelict properties throughout the state.

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Success will not be measured by the amount of tax collected, but rather by the number of properties restored and homes created.