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The Government is preparing new powers to take ownership of long-abandoned properties when unpaid dereliction charges and interest outstrip a building’s market value. The measures, contained in the Finance Bill, are expected to be voted on in the Dáil tomorrow.
How the new charge will work
Under the proposed scheme, Revenue would levy an annual tax equal to 7% of a property’s market value on sites officially classed as derelict. Owners would be required to declare such properties if they remain derelict by June 2028.
Una Leonard of 2210 Patisserie joins Chupi in aid of the Irish Cancer Society
Government set to gain new powers to seize derelict properties
Failure to declare or to meet the new tax obligations would trigger additional interest and penalties. If those sums grow to more than 110% of the property’s value, the State may move to take control of the building.
When the State can seek to seize a building
The Finance Bill includes a provision described as the ‘no owner has engaged’ clause, under which the Department of Finance can apply to the High Court to transfer ownership and management of a property to the State.
- The Government must notify the owner at least six months before applying to the court.
- After that period, the State must show the property is registered and remains undeclared.
- The outstanding tax and interest must exceed 110% of the building’s value.
State role and confirmation
If the High Court approves an application, the State would take ownership and responsibility for managing the property. The measures aim to address hard-to-tackle dereliction by giving authorities a clear legal route to intervene.
A Department of Finance spokeswoman confirmed the details of the proposed powers to Extra.ie. The Finance Bill provision will go before the Dáil for a vote tomorrow.
