Hardware Association Ireland (HAI) will confine its comments to issues pertaining to Housing – and it looks positive. As always, the insights are in the details and HAI will be seeking these over the coming weeks.
We will share a more comprehensive response soon.
Housing
- Living City Initiative: The Living City Initiative supports the enhancement of
- older housing and commercial properties in the designated Special Regeneration Areas in Cork, Dublin, Galway Kilkenny, Limerick, and Waterford. Extending it to the end of 2030.
- Increasing its scope for residential properties from those built before 1915 to those built before 1975.
- Furthermore, amending the scheme to support the use of “above the shop” premises for residential purposes.
- Where the works are carried out by enterprises, the maximum amount of relief available will be increased from €200,000 to €300,000 and providing greater flexibility on the time period over which the relief can be claimed.
- Adding five regional centres under the National Planning Framework to the scheme. These are Athlone, Drogheda, Dundalk, Letterkenny, and Sligo.
- Adding Special Regeneration Areas to these towns will require careful planning and preparation by the relevant Local Authorities.
Construction Costs
- To further incentivise the provision of new residential units, introducing an enhanced corporation tax deduction for certain costs incurred on the construction of apartment developments, and for the conversion of non-residential buildings into apartments, to improve the viability of such developments. It will be available for projects where a Commencement Notice is submitted on or after the 8th of October 2025, and on or before the 31st of December 2030.
VAT on Apartments
- Reduction in VAT to 9% from 13.5%, effective from budget day until the 31st of December.
Retrofitting Deduction for Landlords
- To continue supporting the upgrading of rental housing stock, rolling over the Income Tax deduction for small landlords, who retrofit their properties, for a further three years.
Derelict Property Tax
- The introduction of a new Derelict Property Tax, which will be implemented and collected by the Revenue Commissioners. This new tax will replace the Derelict Sites Levy, which is currently charged at a rate of 7% on the site market value. The new tax will not be charged at a lower rate than this.
- Legislation introduced providing for the Derelict Property Tax in 2026. Preliminary registers of dereliction will be published in 2027, and the tax will be implemented as soon as possible after this date.
Residential Zoned Land Tax
- The Residential Zoned Land Tax introduced in Budget 2022, came into effect on 1st February 2025. This tax is designed to increase the national stock of zoned and infrastructurally serviced land and to deliver housing across the country.
- An exemption in 2026 if owners seek to have their land rezoned to reflect the genuine economic activity being carried out.
Cost Rental Housing
- Exemption of the rental profits arising from homes that fall within the Cost Rental Scheme from corporation tax.
Residential Development Stamp Duty Refund Scheme
- The Residential Development Stamp Duty Refund Scheme is due to expire at the end of this year. In this year’s Finance Bill, it will be extended until the end of 2030. This scheme provides for a partial repayment of the Stamp Duty paid on a deed of conveyance or transfer of land where the land is subsequently developed for residential purposes.
- Provision of full Stamp Duty refund to be claimed in respect of a multi-phase development at the commencement of the first phase of the development.
For further information about our response to Budget 2026 please visit www.hardwareassociation.ie.
