Ireland property tax: 7% derelict property levy in Finance Bill 2026
Ireland's Finance Bill adds a 7% tax on the value of derelict homes, payable by June 2028, and lifts Help to Buy relief to 35,000 euros from 30,000.
The facts
- The Department of Finance published the Finance (No. 2) Bill 2026 on 19 October 2026, introducing a Derelict Property Tax of 7% of the property's value, payable by June 2028 unless the property is remediated.
- From January 2027 local authorities will identify derelict properties in towns of 4,000 people or more and pass the details to the Revenue Commissioners, which administers the tax from registers the councils compile.
- Help to Buy relief rises from a maximum of 30,000 euros to 35,000 euros, for new-build contracts entered into, or self-build first mortgage drawdowns, on or after 7 October 2026. The relief is the lowest of 35,000 euros, 10% of the purchase price, or the income tax and deposit interest retention tax paid in the four previous years.
- Rent-a-Room relief rises from a ceiling of 14,000 euros to 16,000 euros from 1 January 2027, and is extended to auxiliary dwellings of between 32 and 45 square metres within the grounds of a main residence, installed after 27 July 2026.
- The Rent Tax Credit for 2027 and 2028 goes up to 1,150 euros for a single claimant and 2,300 euros for a jointly assessed couple.
What it means for your money
- A 7% charge on a derelict home's value changes the maths on an Irish refurbishment buy. The cheap entry price now comes with a clock on it.
- Glopra data put the effective tax on rental income in Ireland at 20% on the standardised non-resident case, with freehold title and no restriction on foreign buyers. The Rent-a-Room rise applies to a room in an owner's own home, so it does not reach that 20%.
- For a buyer rather than a holder, the 35,000 euro Help to Buy figure is a ceiling and not an entitlement: it is capped at 10% of the price and at the tax actually paid in the four years before applying.
- A Rent Tax Credit of up to 2,300 euros for a couple supports what a tenant can afford to pay, which is the demand side of any Irish rental calculation.
What to watch
- The published summary does not state whether the 7% charge is annual or one-off. The bill text is where that is settled.
- Councils start identifying derelict properties in January 2027 and the tax falls due by June 2028, so the window to remediate runs between those two dates.
- A revised Residential Zoned Land Tax map is due on 31 January 2027, and landowners on it can request a rezoning and, if conditions are met, claim an exemption from the 2027 liability.
Sources: Department of Finance https://www.gov.ie/en/department-of-finance/press-releases/department-of-finance-publishes-finance-bill-no2-2026/