New Derelict Property Tax to Launch in 107 Irish Cities, Towns; Replaces Existing Levy

The Irish Government is set to introduce a new Derelict Property Tax across 107 cities and towns nationwide. Tánaiste and Minister for Finance Simon Harris will present the plans to Cabinet on Tuesday, with the tax slated for inclusion in the Finance Bill later this year.

Initially, the tax will target properties in urban areas with populations exceeding 4,000 residents. This encompasses major cities such as Dublin, Cork, Limerick, and Galway, alongside towns including Drogheda, Dundalk, Navan, Sligo, and Roscommon. A subsequent phase will expand the initiative to an additional 64 towns with populations of 2,000 or more, increasing the total coverage to 171 locations.

This new tax will supersede the existing derelict site levy, which currently imposes a charge of 7% of a property's market value. The rate for the new tax will not be less than the current 7%. Minister Harris emphasized that the primary goal of this measure is to foster community revitalization by reintegrating long-term derelict buildings into productive use. He stated that the success of the tax will be gauged not by revenue generation, but by the number of properties restored and new homes created.

Revenue will be responsible for administering the new tax, while local authorities will manage derelict property registers and identify eligible properties. Officials are currently finalizing the scheme's detailed design, which includes developing exemptions, appeal mechanisms, and ownership verification procedures, in anticipation of the legislation later this year. Latest estimates indicate that approximately 19,438 residential derelict properties were identified across the State by the end of 2025.