Contributor: Charlotte Cumiskey, Director, Real Estate Tax, BDO
What are your main post-Budget 2027 and Finance Bill observations on property?
The introduction of a Derelict Property Tax (DPT) is the most notable property-related measure arising from Budget 2027 and the subsequent Finance Bill. The DPT will replace the existing Derelict Sites Levy, retaining the annual charge of 7% of market value while transferring responsibility for its administration and collection from local authorities to Revenue.
Local authorities will inspect relevant areas and identify derelict properties during 2027. Preliminary registers will be published on 1 September 2027, followed by final registers on 28 February 2028. The first payment and filing deadline will be 23 June 2028. Given the rate of tax, potentially affected owners should consider remediation or redevelopment well in advance of that deadline.
Viewed alongside the existing Residential Zoned Land Tax, the DPT signals a broader evolution in Irish housing tax policy. The tax system is increasingly being used not only to raise revenue and support housing activity, but also to influence how land and buildings are utilised.
The Finance Bill also enhances existing housing supports. Help to Buy increases to a maximum of €35,000, with the property-value cap rising from 5% to 10%. The Rent Tax Credit increases to €1,150 per individual, while the Rent-a-Room Relief threshold rises to €16,000 and is temporarily extended to qualifying auxiliary dwellings within the grounds of a principal residence.
Taken together, the measures continue to demonstrate an active use of tax policy, combining targeted housing supports with increasingly direct tax incentives to bring under-utilised land and buildings into productive use.
Content adapted from Finance Dublin Irish Tax Monitor.