Derelict Properties Tax of 7% if no remedial action taken

Owners of derelict properties in cities and towns across Ireland will face a 7% tax if no remedial action is taken, under a new Coalition initiative to combat dereliction. Tánaiste and Finance Minister Simon Harris will announce the details of the Derelict Property Tax, which mirrors the rate of the previous levy system administered by local authorities.

From January 2028, local authorities must submit lists of derelict buildings to the Revenue Commissioners, who will now enforce the tax. Property owners have until June 2028 to rectify the issue, after which they will be liable for the penalty. The tax initially targets urban areas with populations of 4,000 or more, covering 107 cities and towns, including Dublin, Cork, Limerick, Galway, Drogheda, Dundalk, Navan, Sligo, and Roscommon.

A subsequent phase will expand the tax coverage to 64 additional towns with populations of 2,000 or more, totaling 171 locations. An appeals system overseen by local authority appeals officers will be implemented. The Finance Bill, containing 79 sections and 237 pages, will be debated in the Dáil, confirming the 7% rate. For instance, a derelict property valued at €300,000 would incur a tax bill exceeding €20,000.