Dundalk & Drogheda joins the Living City Initiative, a new incentive for revitalising our town centres
- ciaranbrodigan
- 7 hours ago
- 3 min read
Budget 2026 brought good news for Dundalk and Louth. The Government has officially expanded the Living City Initiative (LCI), Ireland’s long-running tax incentive for urban regeneration, to include Dundalk & Drogheda for the first time.
For property owners, investors and local enterprises, this is a real opportunity to breathe new life into older buildings while benefiting from valuable tax reliefs.
What is the Living City Initiative?
The Living City Initiative is a Government scheme designed to support the refurbishment and conversion of older buildings in our town and city centres. It's goal is simple, to reduce vacancy, encourage people to live and work in town cores, and preserve the heritage that gives each place its character.
Through the LCI, property owners can claim relief on qualifying renovation or conversion works:
Owner-occupiers – income tax relief on the cost of refurbishing their home
Landlords and investors – tax relief on rented residential properties
Businesses and commercial property owners – capital allowances for refurbishing or converting premises
What’s changed under Budget 2026
Until now, the LCI applied only to Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The two Louth towns of Dundalk & Drogheda have now joined that list, along with a small group of other regional growth centres identified under the National Planning Framework.
National Planning Framework.
Budget 2026 also introduced several updates to make the scheme more accessible and impactful:
Change | Impact |
|---|---|
Eligibility extended to pre-1975 buildings (previously pre-1915) | More mid-20th-century homes and premises now qualify |
Inclusion of “over-the-shop” conversions | Encourages residential use above retail units |
Commercial relief cap raised to €300,000 | Greater support for enterprise-led regeneration |
Scheme extended to 31 December 2030 | More time for projects to plan and claim |
Checking if your property qualifies
Relief under the LCI applies only to buildings within a designated Special Regeneration Area (SRA). For Dundalk & Drogheda, the SRA boundaries will be set by Louth County Council, and maps are expected to be published soon.
Here’s how to check eligibility once they’re available:
Visit the Louth County Council planning pages.
Look for “Living City Initiative” or “Special Regeneration Area” maps.
If maps aren’t yet live, contact the Council’s Planning Department for confirmation.
You’ll also need to confirm:
The property was built before 1975 (for residential relief).
The works are refurbishment or conversion, not new build.
Minimum qualifying spend is met (usually from around €5,000, depending on the relief type).
All works comply with building regulations and planning permissions.
Relief types at a glance
Who | Type of Relief | How It Works |
Owner-occupiers | Income tax relief | Claimed over seven years – typically 15% per year for six years, 10% in year seven* |
Landlords / residential investors | Rental property relief | Tax relief on qualifying refurbishment works |
Businesses / commercial owners | Capital allowances | Claim over time, up to €300,000 of qualifying spend |
*Exact pattern depends on date of first occupation and Revenue rules at the time of claim.
Why this matters for Dundalk & Louth
Dundalk has a strong stock of mid-century buildings, many with untapped potential above shops or within vacant plots. The Living City Initiative can help transform these spaces into modern homes, offices, or retail units while protecting the town’s heritage character.
More residents living and working in the centre means more footfall, stronger local business activity, and a safer, more vibrant urban core. It’s also a practical way to support sustainability, reusing what we already have rather than building from scratch.
Getting started
If you’re thinking about renovating or converting a property in a town centre under the Living City Initiative, now is the time to explore your options.
Step 1: Confirm your property’s SRA status with your local County Council.
Step 2: Check build date and ensure your planned works qualify.
Step 3: Keep detailed invoices and permissions for all works.
Step 4: Claim through your accountant or tax adviser once the project is complete.
How we can help
At UHY Farrelly Dawe White, we help property owners, developers and businesses unlock the full value of schemes like the Living City Initiative. Our tax and advisory teams can:
Assess eligibility and estimate potential reliefs
Guide you through the claim process
Liaise with Revenue where clarification is needed
Want to know if your property could qualify under the Living City Initiative?
Get in touch with our team today to discuss your plans and see how we can help make your project financially viable, and part of Louth's ongoing renewal.
