Harris announces new Derelict Property Tax to tackle dereliction in 107 towns, Revenue to take over from 'failed' councils
A new Derelict Property Tax will replace the existing 7% levy and be administered by Revenue, Tánaiste Simon Harris announced, citing frustration with local authorities who 'badly failed' to tackle dereliction.
Tánaiste and Finance Minister Simon Harris confirmed on Sunday that the Government will introduce a new Derelict Property Tax, scrapping the current derelict sites levy in favor of a self-assessed tax collected directly by Revenue. The move follows years of what Harris described as systemic failure by local councils to enforce the existing 7% charge on abandoned properties.
Speaking at a Fine Gael event marking the centenary of Garret FitzGerald's birth, Harris was scathing.
We're taking it out of frustration, we're taking it out of some bit of anger, quite frankly, that the scourge of dereliction is in our communities, that local authorities have not done enough to rectify it.
Scale of dereliction and the levy's collapse
Address data firm GeoDirectory estimated 19,438 residential derelict properties across the State at the end of 2025, yet only around 2,100 appear on official derelict property registers. Harris said if you looked at the register, 'you'd swear to God dereliction was only in a couple of counties', accusing councils of failing despite extra staff and funding.
- Total residential derelict
- 19438 properties
- Officially registered
- 2100 properties
How the new tax will work
The tax, to be legislated for in October's Budget, will be set at a minimum of 7% of a property's market value — matching the old levy — but will now be self-assessed and backed by Revenue's enforcement powers. Penalties will apply for non-compliance. Harris stressed the goal is not to raise revenue but to force behavioural change.
We're now going to legislate in this year's budget to bring in a derelict sites tax and to have Revenue collect it, and that will focus the minds around dereliction.
Phased introduction across 171 locations
The tax will roll out in two stages. Phase one covers 107 cities and towns with populations above 4,000, including Dublin, Cork, Limerick, Waterford, Galway, Drogheda, Dundalk, Navan and Sligo. Phase two will extend it to a further 64 towns of 2,000 or more residents, bringing the total to 171 urban areas.
- Phase 1 (>4,000 pop.)
- 107 towns
- Phase 2 (>2,000 pop.)
- 64 towns
A frustrated Government acts
Harris linked the move directly to the housing crisis, saying it was 'sickening' for young people trying to buy a home to see boarded-up buildings left idle. He urged owners to avail of grants or face a 'hefty tax'. The Tánaiste will bring a memo to Cabinet on Tuesday detailing the proposals ahead of legislation in the Finance Bill later this year.
They have a choice: come talk to us, get it back into use, or pay a hefty tax.
