Ireland to Introduce New Derelict Property Tax to Tackle Housing Shortage

Dublin: The Irish government is preparing to introduce a new Derelict Property Tax aimed at bringing long-abandoned and dilapidated buildings back into use as part of efforts to address the country’s ongoing housing crisis.

The proposed tax is expected to be introduced later this year through amendments to the Finance Bill, with Simon Harris set to brief Cabinet colleagues on the plans.

Tax to Cover 171 Towns and Cities Nationwide

The scheme will be rolled out in phases. In its first stage, it will apply to 107 cities and towns with populations exceeding 4,000.

These include major urban centres such as Dublin, Cork, Limerick and Galway, along with regional towns including Drogheda, Dundalk, Navan, Sligo and Roscommon.

A second phase will extend the measure to an additional 64 towns with populations above 2,000, bringing the total number of areas covered under the new tax regime to 171.

Ireland already imposes a derelict sites levy on vacant and neglected sites, currently set at 7% of the property’s market value.

The government has indicated that the new tax rate for derelict properties will not be lower than the existing levy, although final details have yet to be confirmed.

‘The Goal Is Homes, Not Revenue’

According to Simon Harris, the primary objective of the measure is not to generate additional tax revenue but to encourage property owners to renovate abandoned buildings and return them to productive use.

He stated that the success of the scheme would be measured not by the amount of tax collected, but by the number of properties restored and the additional housing created.

Local Authorities to Play Key Role

Under the proposed system, the Revenue Commissioners will be responsible for collecting the tax, while local authorities will identify and maintain registers of derelict properties subject to the levy.

Officials are currently finalising details relating to exemptions, appeals procedures and ownership verification.

More Than 19,000 Derelict Homes Identified

Government estimates suggest there were approximately 19,438 derelict dwellings across Ireland at the end of the most recent survey period.

The new tax forms part of a broader strategy to bring vacant and neglected properties back into use at a time when housing affordability and supply remain among the country’s most pressing political and social challenges.

With demand for housing continuing to outstrip supply, the government hopes the measure will help revive long-abandoned buildings and increase the number of homes available across the country.

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