OWNERS OF DERELICT properties in more than 100 towns and cities across Ireland are set to be hit with a new tax as part of government plans to tackle long-standing vacancy and dereliction issues.
Tánaiste and Finance Minister Simon Harris will bring proposals to cabinet on Tuesday for a new Derelict Property Tax, which would replace the existing derelict sites levy and be collected directly by Revenue.
The measure would initially apply in 107 urban areas with populations of more than 4,000 people, including Dublin, Cork, Limerick, Waterford, Galway, Drogheda, Dundalk, Navan and Sligo.
A second phase would extend the tax to a further 64 towns with a population higher than 2,000 people, bringing the total number covered to 171.
Speaking to reporters today, Harris said local authorities had “not done enough” to tackle dereliction and had “badly failed” in administering the current levy system.
“We’re now going to legislate in this year’s budget to bring in a derelict sites tax and to have Revenue collect it,” Harris said, as reported by the Irish Times.
The current levy is charged at 7% of a property’s market value, and the new tax is not expected to be lower than that rate. It will be self-assessed and backed by Revenue enforcement powers.
Harris said the move was being driven by “frustration” and “some bit of anger, quite frankly”, arguing that thousands of buildings with housing potential continue to lie idle during a housing crisis.
The government says the aim is not to raise revenue but to encourage owners to bring properties back into use.
Latest estimates from address data firm GeoDirectory suggest there were almost 19,500 residential derelict properties across the State at the end of 2025, although only around 2,100 are currently listed on official derelict property registers.
Detailed proposals, including exemptions and appeals mechanisms, are expected to be developed ahead of legislation later this year.