A new levy will be charged to developers with vacant sites or empty shops starting at 3% of the cost of the land, and rising.
Major planning reforms have been announced by the Government, which also include a requirement to provide up to 10% social housing in a development, and removes the ability of builders to buy their way out of it.
The draft legislation also introduces a new "use it or lose it" clause, which means builders must develop a site within a time frame or they will lose their planning permission.
The Minister for the Environment, Alan Kelly, says the vacant site levy will apply to both empty land and retail space and will likely be introduced early next year.
Mr Kelly said: "It will be a 3% levy which will be increased every year until 6% is charged on the owners.
"It wil stimulate them to actually develop the sites and the charge will be there until tbhey sell their sites or do something with them, and will be charged against the property.
"We can’t have these sites lying dormant."