7% tax to be confirmed in Finance Bill

Owners of derelict properties face a tax of 7% of the property value if they fail to take remedial action, as the Coalition has enlisted the Revenue Commissioners to help tackle dereliction in cities and towns nationwide.

Tánaiste and Minister for Finance Simon Harris was expected this week to confirm how the new Derelict Property Tax will apply at a 7% rate, the same rate as the outgoing derelict sites levy. RTÉ reported on 19 October 2026 that the detail will be confirmed when the Finance Bill is debated in the Dáil this week.

The report said the old levy system was imposed by local authorities but had come in for criticism for its effectiveness. From January, local authorities will be legally obliged to draw up registers of derelict buildings in their areas to forward to Revenue, which will administer the charge for the first time.

The Finance Bill to come before the Dáil contains 79 sections spanning approximately 237 pages, covering taxation measures for households, property owners, businesses, farmers and investors. For dereliction, the practical example given is stark: an owner with a derelict property valued at €300,000 could face a tax bill of over €20,000.

Foinsí:

RTÉ

Local authorities to draw up derelict building registers from January
Tánaiste and Minister for Finance Simon Harris will this week confirm how a new Derelict Property Tax will apply at a 7% rate; the same rate as the outgoing derelict sites levy.

Criticism over unpaid levies and next steps

The plan has drawn criticism from Sinn Féin. Leader Mary Lou McDonald told Taoiseach Micheál Martin that the plan “lacks the teeth and urgency needed to tackle dereliction head on”, according to the Irish Examiner. She said it was “incredible” that there was nothing in the proposal to ensure that the more than €30m already owed in levies was collected, and said this had gifted “a multimillion euro amnesty to land hoarders”.

Those remarks are attributed political claims about the proposal, not findings about the law itself. On the position for arrears, the Examiner reported that outstanding levies owed to councils will not be transferred to Revenue for collection, and that Revenue will only be responsible for collecting tax accrued from January 2027 onwards.

Government sources stressed, according to the same report, that local authorities can continue to chase property owners for unpaid levies, even when the new derelict tax comes into force. That distinction is central for councils and owners: old debts would remain with councils, while the new charge would be a Revenue matter.

The immediate next step reported is the Dáil debate on the Finance Bill this week, which will confirm the decision to apply the tax at a 7% rate. Councils, owners and prospective buyers will then be watching for the January start to the register duty, the preliminary registers by September 2027 and the June 2028 deadline for remediation or payment.

Foinsí:

Irish Examiner

Revenue will not collect existing derelict property levies under new laws
Tánaiste and finance minister Simon Harris brought plans to Cabinet on Tuesday for Revenue to begin collecting a new derelict property tax from 2027 as part of measures announced in last year’s budget. The tax will be set at a minimum rate of 7%.

RTÉ

Local authorities to draw up derelict building registers from January
Tánaiste and Minister for Finance Simon Harris will this week confirm how a new Derelict Property Tax will apply at a 7% rate; the same rate as the outgoing derelict sites levy.

Ask Dex about this page

Derelict Property Tax at 7% as councils to list sites from January

7% tax to be confirmed in Finance Bill

How registers and Revenue collection will work

Where the tax will apply first

Why the Government says change is needed

Criticism over unpaid levies and next steps

Foinsí

Oifigiúil / Príomhúil

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