Residential Zoned Land Tax
There is a potential exemption for RZLT landowners who make a submission requesting a change in zoning of land appearing on the revised map for 2026.
In addition, an exemption is being provided from RZLT during An Coimisiún Pleanála proceedings brought by a third party in relation to a grant of planning permission in respect of a relevant site.
Derelict Property Tax
A new Derelict Property Tax (DPT) has been announced. This new tax will be collected by the Revenue Commissioners and will replace the existing Derelict Sites Levy. It is intended that the tax rate will not be less than 7%. Preliminary registers of dereliction will be published in 2027, and the tax will be implemented as soon as possible after this date.
Residential Development Stamp Duty Refund Scheme
This will be extended to the end of 2030. There will be an extension of the two time limits that apply (acquisition to commencement, and commencement to completion) from 30 months to 36 months where an application for a stamp duty refund is made in respect of a large-scale residential development. A full stamp duty refund can be claimed in respect of a multi-phase development at the commencement of the first phase of that development.
Living City Initiative
This scheme is being extended to 31 December 2030. Heretofore, qualifying buildings for this scheme must have been built before 1915. The scheme will now apply to houses built before 1975.
Additionally, a new category of tax relief is being introduced under this scheme and will apply to commercial properties converted into residential properties. It will also apply to “over the shop” premises converted for residential purposes. The building age restriction will not apply to these properties. Further details will be set out in Finance Bill 2025.
Corporation tax exemption for cost rental income
A new corporation tax exemption for rental profits arising from cost rental properties has been announced. This will relate to properties deemed cost rental from 8 October 2025.
Enhanced corporation tax deduction for apartment construction costs
Subject to certain conditions, a new enhanced corporation tax deduction is being introduced for qualifying apartment construction costs. It will be available to developers and will apply to both construction costs in respect of new build apartments and costs incurred converting other properties into apartments. The deduction will only be available in respect of projects comprising 10 or more apartments.
The enhanced deduction will be 12.5% of actual costs incurred, up to a maximum of €50,000 per apartment, equaling a tax saving for the developer of €6,250 per apartment.
Reduced rate of VAT on apartments
The 13.5% VAT rate is to be reduced to 9% on sale of completed apartments with immediate effect from 8 October 2025 to 31 December 2030.