All public and private nursing homes will be required under law to meet 32 new standards from the start of July.
The new inspection system was announced today by Minister for Health Mary Harney.
Residents will have a right to a written contract of care, privacy and dignity and to be cared for in a safe, hygienic facility.
Under the new system, all nursing homes will have to be registered and pay €500 for this every three years.
To help fund the inspection system, all nursing homes will also have to pay a charge of €190 a year for each patient.
Nursing Homes Ireland said that for an average 50-bed nursing home, the new annual licensing fee of €190 a bed would mean an extra cost of almost €10,000 a year.
Minister Harney said she accepted that the fees will be passed on to residents.
Nursing Homes Ireland says the new charges are being introduced without consultation.
It says it would like a meeting with the Minister to discuss the changes.
The charges will also cost the HSE an extra €1.9m a year for its public nursing homes.
The inspections will be operated by the social services division of the Health Information and Quality Authority.
The Authority will have the power to close a nursing home that fails to meet the new standards.
Residents will be entitled to an assessment of their needs before they move to a home and there are new rules on the use of restraint.