Govt to introduce new Derelict Property Tax

The Irish Government is introducing a new Derelict Property Tax across 107 cities and towns to encourage the restoration of abandoned buildings, according to Tánaiste and Minister for Finance Simon Harris. The tax will be part of a Finance Bill later this year and initially targets urban areas with populations of 4,000 or more.

Which towns and cities will be affected by the new tax?

The first phase covers 107 locations, including Dublin, Cork, Limerick, and Galway cities. Other affected towns include Roscommon, Sligo, Navan, Dundalk, and Drogheda, according to government plans.

A second phase is expected to extend the measure to an additional 64 towns with populations of 2,000 or more. This expansion would bring the total number of covered locations to 171.

Did You Know? Latest estimates indicate there were approximately 19,438 residential derelict properties across the State at the end of 2025.

How does the new tax differ from the current levy?

The new tax replaces the existing derelict site levy, which is currently charged at 7% of the property’s market value. Minister Harris stated the new tax rate will not be lower than this current figure.

Revenue will administer the tax, while local authorities are responsible for identifying properties and maintaining derelict property registers. Officials are currently designing the scheme’s appeals mechanisms, ownership verification, and exemptions.

Expert Insight: Samantha Carter notes that by decoupling success from the amount of tax collected and linking it to the number of homes created, the government is positioning the tax as a tool for urban regeneration rather than a fiscal revenue stream.

What is the goal of the derelict property measure?

Minister Harris said the primary objective is to support the revitalisation of communities. The government aims to bring long-term derelict buildings back into productive use.

Simon Harris: New Derelict Property Tax and Support for Savers

The Minister indicated that the measure’s success will be measured by the number of properties restored and homes created, rather than the total tax revenue generated.

What happens next with the legislation?

Minister Harris is scheduled to update the Cabinet on Tuesday regarding these plans. The tax is likely to be formally introduced as part of the Finance Bill later this year.

Because the detailed design is still being developed, specific rules regarding exemptions and the appeals process may be clarified as the legislation progresses.

Frequently Asked Questions

What is the population threshold for the first phase of the tax?
The tax initially applies to properties in urban areas with populations of 4,000 or more.

Who is responsible for identifying derelict properties?
Local authorities will identify properties that meet the criteria and maintain the relevant registers.

Will the new tax rate be lower than the previous 7% levy?
According to Minister Harris, the new tax rate will not be lower than the current 7% figure.

How could the restoration of nearly 20,000 derelict properties impact local community revitalisation?