Budget 2027
Derelict Property Tax: 7% a year on derelict buildings
Last updated 16 October 2026
A new tax of 7% a year on the self-assessed value of derelict property, collected by Revenue. Registers from September 2027; first payment June 2028.
The Derelict Property Tax (DPT) was announced in Budget 2026. It is being written into law in Finance (No. 2) Bill 2026, as set out in the Department of Finance's Tax Policy Changes document. It takes effect when that Bill is enacted. It replaces the Derelict Sites Levy charged by local authorities (Citizens Information).
How it works
- local authorities identify derelict properties and keep a register of them
- it applies to residential and non-residential property
- the tax is 7% of the property's self-assessed value, each year it is on the register
- Revenue collects it, through a pay-and-file system
| Self-assessed value of a derelict house | €180,000.00 |
| Derelict Property Tax a year at 7% | €12,600.00 |
What counts as derelict
A property is derelict if the local authority considers it is neither in use nor fit for use. The use can be as a home or a commercial, social or community building. Factors include being partly or fully boarded up, a roof that is no longer weatherproof, and failing plasterwork or unsecured brickwork.
Where it applies first
In the first year, towns and cities with a population of 4,000 or more in Census 2022: 107 towns. In the second year, towns of 2,000 or more: 171 in all.
The first year's timeline
| Date | Step |
|---|---|
| 1 January to 31 August 2027 | Local authorities inspect and identify derelict properties |
| 1 September 2027 | Preliminary registers published |
| 1 September to 30 November 2027 | Owners can ask for a review of their property's inclusion |
| To 29 February 2028 | Local authorities decide reviews |
| 1 March 2028 | Final registers published; Revenue pay-and-file opens |
| 23 June 2028 | First pay-and-file deadline |
After that, the cycle repeats each year, with inspections from March to August.
Avoiding the tax
Owners stop being liable by making sure the property is no longer derelict. They can repair it, demolish and clear the structure, or sell it to someone who will deal with it. Some deferral will be available, so owners who remediate within a reasonable time may get the tax reduced. Full details will be in the Finance Bill.
Work it out
Sources
- Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.