Seán Canney TD, Minister of State for International and Road Transport, Logistics, Rail and Ports and Leader in Cabinet of the Independent Ministers, has welcomed progress on the development of a new Derelict Property Tax, which is due to be brought forward as part of Finance Bill 2026.

The new tax is aimed at tackling long-standing dereliction issues by encouraging property owners to either bring buildings back into use or put them on the market.

Minister Canney said this is about making better use of what we already have in our towns and communities.

“There are too many buildings sitting idle while people are looking for places to live or for space to start a business. This is about changing that.

“It’s about encouraging action – whether that’s renovation, reuse or sale – so that these properties can play a role again in local communities.”

The new tax will replace the existing Derelict Sites Levy and is intended to provide a more consistent and effective approach across the country.

Work is ongoing on key elements of the tax, including how derelict properties will be defined, where the tax will apply, and how it will interact with other measures such as the Vacant Homes Tax and Residential Zoned Land Tax.

It is expected that local authorities will begin identifying derelict properties under the new system in 2027, with a register to be published before the tax is fully implemented.

Minister Canney said it’s important that the system is practical and fair.

“We need a system that works in practice and is applied consistently across the country.

“Dereliction has a real impact – it affects how places look and feel, and it represents missed opportunities, particularly in towns and villages where there is real potential for regeneration.”

The Minister said the focus now is on making sure the new system works well on the ground.

“This needs to be practical and workable for everyone involved, particularly local authorities who will be central to identifying properties and getting this up and running.”