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The key real estate measures introduced in the Bill include the following:
A further opportunity for landowners to make an application to have the zoning of land changed for the purposes of the Residential Zoned Land Tax.
An increase in the maximum relief that can be claimed under the Help to Buy Scheme.
An increase in the rental tax credit available for a principal private residence.
An increase in the income tax exemption available under the Rent-a-Room Relief and an extension of dwellings within scope of the relief.
The introduction of the Derelict Property Tax
A reduction in the Capital Gains Tax rate (with the exception of disposals of development land).
Residential Zoned Land Tax
A further opportunity will be provided to allow landowners to make an application to have the zoning of land changed. The site cannot be the subject of an extant planning permission for residential development, nor can there be a current planning application for residential development. The deadline to make the application to the local authority will be 30 April 2027, in line with prior years. This would effectively remove the charge to RZLT in 2027.
At this point, no change to the position in relation to sales by way of a forward fund has been announced, meaning an RZLT clawback in the case of residential development can still arise.
Relief for first-time buyers
The upward limit of the refund that can be claimed by first-time buyers under the Help to Buy Scheme has increased by €5,000 to €35,000. This applies to claimants who enter into a contract for the purchase of a new build, or, in the case of a self-build home, who draw down the first tranche of their mortgage on or after 7 October 2026.
Relief for renters
The annual tax credit available on principal private residences will be increased for the 2027 and 2028 years of assessment. The value of the credit will increase to a maximum of €1,150 per single individual and €2,300 for married couples.
Relief for landlords
The income tax exemption in respect of the Rent-a-Room Relief has increased to a maximum of €16,000 from 1 January 2027.
The relief has also been extended to newly installed detached auxiliary dwellings (such as backyard cabins) that are between 32m² and 45m². The change applies retrospectively from 27 July 2026 when the new planning rules came into force and will be in place until 31 December 2030.
Derelict Property Tax
Derelict Property Tax is an initiative being introduced to support housing supply and regeneration (although please note that its introduction is subject to a commencement order). The tax will be introduced on a phased basis, first applying to towns with a population of at least 4,000 and expanding to include towns with a population of at least 2,000 from the second year of operation. The tax will apply to residential and non-residential properties, with a rate of tax of 7% being applied on the self-assessed value of the property.
Local authorities will be responsible for compiling and maintaining a register of derelict properties based on a number of criteria, such as a property not in use or not suitable for use as a dwelling, commercial, social, or communal facility.
A preliminary register of derelict properties will be published on 1 September 2027. Property owners will have a right to request a review of their property’s inclusion on the register until 31 October 2027. Final registers will be published on 28 February 2028 in advance of the first pay and file deadline arising on 23 June 2028. A similar annual cycle is expected to apply thereafter.
A credit will be available to reduce the derelict property tax payable where the same property has suffered local property tax or vacant homes tax in the prior year.
The draft legislation contains certain deferral provisions in respect of the tax such as a change in ownership or a claim of completion of remediation works. Potential deferrals should be reviewed and considered.
Capital Gains Tax reduction
The standard rate of Capital Gains Tax has been reduced to 31% for disposals made on or after 7 October 2026. This excludes disposals in respect of development land, which continue to be chargeable to Capital Gains Tax at the rate of 33%.
Key actions
The Irish tax system, especially in the context of Irish real estate, is complex and requires careful consideration in all transactions. Please reach out to your PwC contact to find out how we can help.
Residential Zoned Land Tax
Landowners should assess whether their sites are zoned correctly and ensure that the necessary rezoning application is submitted to the relevant local authority in advance of the 30 April 2027 deadline.
Derelict Property Tax
Landowners, whether residential or non-residential, should consider whether their property portfolio(s) could be regarded as derelict under the proposed rules. Early assessment will provide time to assess the impact of the property (or properties) being considered derelict, gather professional/supporting evidence regarding a property’s condition or challenge inclusion on a preliminary register before the first filing obligations arise.
Landowners should also consider the availability of certain deferrals provided for in the draft legislation and consider whether a deferral(s) is applicable to their circumstances.
First-time buyers
First-time buyers planning to purchase a new home should assess how the increase in the Help to Buy Scheme affects their funding requirements. Buyers who have already submitted a help to buy application, or who have received approval but not yet drawn down relief or received vendor verification, should monitor updates to Revenue guidance closely to determine whether they can benefit from the increased relief and if further action is required.
Consider the impact on your business
The proposed legislative changes will likely have an impact on your organisation. PwC’s tax team is available to help you and your business understand how these changes will impact your business.
We’re here to help you
Finance (No. 2) Bill 2026 introduces a number of important changes for the real estate sector. Whether you are a property developer, investor, or asset manager, our real estate tax specialists can help you understand the implications for your business and identify the actions you need to take. Get in touch with our team today.
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