Tax Collection

Wednesday, 22 April 2026

Questions (48, 58, 59)

Rory Hearne

Question:

48. Deputy Rory Hearne asked the Tánaiste and Minister for Finance to outline what action will be taken if tax due is not paid (details supplied); and if he will make a statement on the matter. [28974/26]

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Rory Hearne

Question:

58. Deputy Rory Hearne asked the Tánaiste and Minister for Finance to clarify the way in which funds raised under the new derelict site tax collected will be allocated, to confirm if funds collected will be allocated to the Local Authority, in which the derelict site or building is located in; and if he will make a statement on the matter. [28973/26]

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Rory Hearne

Question:

59. Deputy Rory Hearne asked the Tánaiste and Minister for Finance to confirm the definition of derelict sites that will be used for the derelict site tax; and if he will make a statement on the matter. [28975/26]

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Written answers

Tánaiste and Minister for Finance

I propose to take Questions Nos. 48, 58 and 59 together.

In Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.

I intend to legislate for DPT as part of Finance Bill 2026. This is dependent on engagement from stakeholders and will also be influenced by any advice I receive from the Attorney General. A preliminary register of derelict properties will be published in 2027 and the tax will be implemented as soon as possible after this.

Officials in my Department are engaging on an ongoing basis with Revenue and the Department of Housing, Local Government and Heritage on the design of this new tax. The definition of a derelict site is one of the matters that is currently being deliberated by officials. An appropriate definition of a derelict site is key to ensuring the tax will be applied in a consistent manner to all residential properties that are derelict. Further detail on the definition will be published when the tax is legislated for later this year.

As DPT will be legislated for as part of Finance Bill 2026, the tax collected will accrue to the Exchequer in the first instance. Local authorities will need time and resources to identify properties in their areas. I understand that a mechanism will be required to support local authorities in transitioning from the levy to the tax. It is appropriate that this mechanism be dealt with as part of the wider estimates process, in advance of Budget 2027.

Regarding the action that will be taken if the tax due is not paid, Revenue have a compliance framework for all taxes and duties that are under its care and management. The details for sanctions in the penalty and enforcement regime for DPT are still being considered, however, the intention is to fully align the tax with Revenue’s compliance framework.

Once the DPT is operational, I am confident that many owners of derelict properties will be incentivised to take action to bring these homes back into use and ultimately contribute to our housing stock. The behavioural effect of the tax will also contribute to regeneration and development, breathing new life into our villages, towns and cities.