Dereliction: The 7% wake-up call
PROPERTY
PROPERTY INSIGHTS
With Johnny Gannon, Fair Deal Property
Ireland’s proposed 7% Derelict Property Tax sends a clear message to owners of neglected buildings: leaving a property idle could soon become an expensive decision.
Under the plans outlined in the Finance Bill, Revenue would collect a charge equal to 7% of the value of qualifying derelict properties. On a property valued at €300,000, that works out at €21,000. It is a substantial sum for owners already struggling with maintenance, inheritance or renovation costs.
The proposed system would replace the existing levy collected by local authorities. Its introduction follows criticism of weak collection rates, with more than a third of councils reportedly collecting nothing in 2024.
The initial rollout is intended to cover 107 towns and cities with populations of at least 4,000, which includes Tuam, followed by a further 64 towns. Owners are expected to have until June 2028 to carry out remedial works before the charge applies.
For Tuam and the wider Galway property market, this raises an important question: are we looking at a tax problem, or an opportunity to bring buildings back into use?
I believe it can be both.
Across our towns and villages, vacant properties often have stories behind them. Some are inherited family homes. Others are former shops, investment properties or buildings whose owners cannot decide what to do next.
The longer they remain untouched, the greater the risk of deterioration and rising repair costs. Yet many could appeal to buyers willing to renovate, subject to a realistic assessment of condition, planning requirements and finance.
There is no one-size-fits-all answer. Renovation may suit one owner; selling could be the more practical choice for another. Available refurbishment grants may also be worth investigating, where eligibility conditions are met.
Crucially, a vacant property is not automatically a derelict property. Owners should establish whether their building falls within the proposed rules rather than assume they face a tax bill.
My advice is simple: do not wait until 2028 to explore your options. Seek a realistic valuation, understand the cost of works and make an informed decision while there is time to act.
At Fair Deal Property, we see strong interest in properties with renovation and redevelopment potential. What looks like a burden to one owner may represent a worthwhile project to another.
Ireland needs new homes, but we also need to make better use of the buildings already standing. Unlocking that potential starts with action, not uncertainty.
For more, call 093-59014 or visit www.fairdealproperty.ie.