Letterkenny included in tax relief scheme taking on vacancy and dereliction

Letterkenny has been included in the Living City Initiative.

Drogheda and Dundalk in Louth, as well as Sligo and Athlone, Co Westmeath, are among five new towns officially added to a tax relief scheme aimed at tackling vacancy and dereliction.

The Tánaiste and Minister for Finance, Simon Harris, has signed orders formally extending the scheme.

Property owners in designated parts of Letterkenny will be eligible to apply for tax relief to refurbish homes, rental properties, or convert buildings for residential or commercial use.

The area in Letterkenny indicated by red lines on the map is specified as a special regeneration area for the purposes

Local TD Pat the Cope Gallagher of Fianna Fáil has welcomed the Government’s decision to designate Letterkenny as one of the five new towns added to the Living City Initiative (LCI), describing it as an important step toward revitalising the town centre and bringing vacant buildings back into productive use.

Deputy Gallagher noted that this decision provides meaningful support for Letterkenny’s regeneration efforts, particularly in areas affected by vacancy, dereliction and under‑use.

“This is a positive development for Letterkenny,” he said. “The Living City Initiative offers practical incentives that can help restore older buildings, encourage town‑centre living, and support the long‑term economic and social vitality of our urban core.”

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Key benefits for Letterkenny include tax relief for refurbishment of residential and rental properties; support for commercial‑to‑residential conversions, including “Living Over the Shop”; designation of Special Regeneration Areas (SRAs) targeting parts of Letterkenny most in need of renewal; eligibility extended to buildings constructed before 1975, significantly widening the number of properties that qualify and the scheme is extended to 2030, providing long‑term certainty for property owners and investors

Deputy Gallagher added that the scheme aligns with ongoing efforts to strengthen Letterkenny’s role as the economic hub of Donegal.

“Letterkenny has enormous potential,” he added. “This initiative provides a real opportunity to breathe new life into the town centre and support sustainable growth for years to come.”
Funded by the Local Democracy Reporting Scheme