The Government is set to introduce a new Derelict Property Tax for Ireland.
The proposed new tax will initially apply to properties located in 107 urban areas across the State with a population of 4,000 or more.
It is expected that the new tax will be introduced as part of the Finance Bill later this year.
Amongst the areas it will target includes Dublin, Cork, Limerick and Galway cities, as well as towns such as Drogheda, Dundalk, Navan, Sligo and Roscommon.
A second phase will then extend the measure to a further 64 towns with populations of 2,000 or more. This will bring the total number of locations covered to 171.
The tax will replace the current derelict site levy, which is charged at 7% of the market value of the property but will not be lower than the current figure.
It is estimated that there are almost 19,000 vacant residential properties across the country, with the hope being that the new tax will encourage them to be brought back to the market.
Tánaiste and Minister for Finance Simon Harris has said the primary objective of the measure is to support the revitalisation of communities by bringing long-term derelict buildings back into productive use.
Figures show there are 1,001 derelict properties across Dublin, making up around 0.2% of the overall housing stock.
In Cork there are 1,788 derelict properties that could be used for domestic use, making up 0.7& of the overall housing stock. The figures are much higher for counties along the west coast, with 1,482 derelict houses in Donegal (1.7% of overall stock); 1,441 in Galway (1.2%) and 1,524 in Mayo (2.2%).
Collection of the derelict property levy is currently the responsibility of local authorities but figures show that Wicklow, Westmeath, Tipperary, Monaghan, Louth, Leitrim, Fingal, Cavan and Galway county and city councils did not collect a single cent of levies in 2024 – the latest year for which figures are available.
The new tax will be administered by Revenue, while local authorities will maintain derelict property registers and identify properties that meet the relevant criteria.
Minister Harris said the success of the new initiative will not be measured by the amount of tax collected, but rather by the number of properties restored and homes created.
Follow MyHome on WhatsApp for all the latest property news and advice.
