Dundalk property owners now eligible for tax relief through Living City initiative

Property owners in parts of Dundalk and Drogheda are now eligible for tax relief to refurbish or convert buildings for residential or commercial use, after Tánaiste and Minister for Finance, Simon Harris signed orders to formally designate the two towns, along with Athlone, Letterkenny and Sligo, under the Living City Initiative.

By incentivising the regeneration of residential and commercial properties, the scheme aims to support the development of underutilised spaces into homes and businesses, while helping to breathe new life into urban centres.

The local authorities with responsibility for the new towns being brought under the Living City Initiative have each submitted proposals for Special Regeneration Area (SRA) maps, see Dundalk map below, which were independently assessed.

SRAs are central urban areas characterised by the need for regeneration, with high levels of vacancy, dereliction and under-use, with a strong stock of older buildings that can be brought back into productive use.

Property owners within these SRAs will be eligible to apply for tax relief subject to meeting the relevant criteria. 

Read also: Louth County Council's approval for 502 homes in Blackrock overturned

Below: Dundalk Special Regeneration Area

As part of enhancements introduced in Budget 2026, the Living City Initiative has been extended to the end of 2030.

Eligibility has also been broadened to include residential properties built before 1975 (previously 1915), significantly increasing the number of buildings that can be brought back into use.

Importantly, a new category of relief has been introduced to support the conversion of commercial premises into residential homes, commonly known as “Living Over the Shop.”

This measure is designed to encourage the reuse of vacant space above retail units, creating new homes in the heart of communities and supporting more vibrant, lived-in town centres. The types of relief available are as follows:

Owner-occupier residential relief - Provides income tax relief for individuals refurbishing properties for use as their main residence, supporting the return of people to town centres.

Rented residential and commercial/retail relief - Offers accelerated capital allowances to support investment in rental housing and commercial premises, helping to support regeneration and reactivate vacant buildings.

Living Over the Shop Relief - Introduced in Budget 2026, this relief supports the conversion of commercial premises into residential units, unlocking underutilised space above shops and enabling more people to live in town centres. There is no building age restriction for this category.