With pressure mounting to address chronic vacancy and boost housing supply, owners are now being pushed to act — refurbish, redevelop or sell — or face an ongoing cost, as the Government prepares to bring a memo to Cabinet proposing a new Revenue‑collected derelict property tax to replace the current levy, with key changes expected to include:

  • The current 7% annual derelict sites levy will be abolished and replaced with a new national derelict property tax.
  • The new tax is not expected to be lower than 7% of market value, with potential for increases over time.
  • Responsibility for collection and enforcement will shift from local authorities to the Revenue Commissioners.
  • The tax is expected to operate on a self-assessment basis, with standard Revenue enforcement mechanisms likely to apply.
  • It will initially apply to properties in cities and towns with populations over 4,000.
  • Local authorities will continue to identify derelict properties and maintain registers, but will no longer collect the charge.

With Revenue at the helm, the message is simple: if a property sits idle, it will now come at a price.

Should you have any queries in relation to the proposed new derelict property tax or a current derelict property please do not hesitate to contact either Eliza O'Grady (Galway office) or Lynda O'Neill (Shannon office).

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