Ireland to Introduce New Derelict Property Tax, Replacing Existing Levy
Ireland is introducing a new Derelict Property Tax, replacing the current levy, to address vacant housing. The Revenue Commissioners will collect this tax, unlike local authorities, to improve collection rates for the estimated tens of thousands of derelict properties. The tax, expected to be at least 7% of market value, aims to incentivize property owners to utilize or sell their derelict sites.
Ireland is set to introduce a new Derelict Property Tax, replacing the existing derelict sites levy, to bring tens of thousands of vacant housing units back into use. Tánaiste and Finance Minister Simon Harris will present the proposal to the cabinet tomorrow, following its announcement in October as part of Budget 2026.
The key difference is that the Revenue Commissioners will collect the new tax, unlike the current levy which local authorities are responsible for. This change addresses the issue of unpaid levies, which totaled approximately €32 million at the start of the year, as most councils struggle with staff and resources to collect these funds. The new tax is expected to be no less than the current 7% of a property's market value, with unpaid amounts potentially leading to inclusion on Revenue’s annual tax defaulter list.
The new tax will be phased in, starting with urban areas of 4,000+ residents, then towns with 2,000+ residents. Preliminary registers of derelict properties are expected from 2027. While GeoDirectory estimates nearly 19,500 residential derelict properties existed at the end of 2025, only about 2,100 are currently on official registers. Existing unpaid derelict sites levies will remain outstanding and local authorities will still be responsible for their collection.