Budget 2027: What It Means for Donegal Property
Budget 2027 was announced on Tuesday, 6 October 2026. Here is what the housing and property measures mean for buyers, sellers, landlords and owners in Donegal.
Help to Buy increased
The maximum Help to Buy claim rises from €30,000 to €35,000 for first-time buyers of a new home or self-build. The €500,000 property price cap has not been adjusted. In Donegal, where self-build and new-build are a big part of the market, this will help first-time buyers. It applies only to new homes and self-builds, not second-hand properties.
Support for renters
The Rent Tax Credit rises from €1,000 to €1,150 for a single person and from €2,000 to €2,300 for a couple. This is welcome but modest. No new measures were announced to increase the supply of rental homes.
Rent-a-Room relief
The tax-free threshold rises from €14,000 to €16,000 a year from 1 January 2027, and the relief is extended to detached auxiliary homes built in back gardens. Homeowners with spare rooms or a garden unit may find this worthwhile.
Derelict Property Tax
The tax will apply to residential and non-residential properties at 7% of the self-assessed value. A preliminary register of derelict properties will be published on 1 September 2027, and owners can request a review of their inclusion. A property can fall outside the charge if it is remediated, demolished and cleared, or sold to a buyer who then addresses the dereliction. If you own a vacant or neglected property, it is worth deciding now whether to restore it, redevelop it or sell it.
Residential Zoned Land Tax
Landowners will get a further opportunity to request a change in zoning of land on the revised 2027 map, and in some circumstances to be exempted from the tax for 2027. Landowners with zoned land should check the map and the deadlines.
Capital Gains Tax cut
The standard rate of Capital Gains Tax falls from 33% to 31%. This may be relevant if you are selling an investment property, a site or commercial premises. Capital Acquisitions Tax (gift and inheritance) is unchanged at 33%. Speak to your accountant or tax adviser about how this applies to your own situation.
What wasn’t included
There was no extension of mortgage interest tax relief.
Our view
Budget 2027 offers targeted help for first-time buyers and renters rather than major change. The measures that will matter most in Donegal are the higher Help to Buy limit and the Derelict Property Tax. Demand is likely to stay strong for well-presented, well-priced homes.
If you are thinking of selling, letting or reviewing your property, contact our team on 074 918 8000 or [email protected]. Sellers can also read our guide to getting contract-ready: https://franklins.ie/contract-ready-properties/