Living Cities Initiative

Drogheda

- €300K Tax Relief

for Property Owners

Property owners in Drogheda's historic town centre can now access up to €300,000 in tax relief to refurbish vacant and derelict buildings. Just like Section 23 gave us Scotch Hall, the LCI will revive our town centre - one building at a time.

Check If Your Property Qualifies
Check If Your Property Qualifies

What is the Living Cities Initiative?

  • The Living Cities Initiative (LCI) is a government tax incentive scheme designed to breathe new life into Ireland's historic town centres. After years of campaigning by Drogheda City Status Group and local representatives, Drogheda was officially included in April 2026.

    • Up to €300,000 in tax relief for commercial property refurbishment (NO age restriction)

    • Relief against income tax for owner-occupier residential refurbishment (pre-1975 buildings)

    • Relief against rental income for buy-to-let refurbishment (pre-1975 buildings)

    • NEW: "Living Over the Shop" conversions (NO age restriction - introduced Budget 2026)

    • Scheme runs until 2030

    • Commercial/Retail use: ANY building age - no restriction!

    • Living Over the Shop: ANY building age - brand new category in Budget 2026

    • Residential use only: Buildings constructed before 1975

    • Located within Drogheda's Special Regeneration Area (SRA)

    • Undergoing substantial refurbishment or conversion

    • Meeting Revenue Commissioner requirements

Special Regeneration Area Map Drogheda
Check If Your Property Qualifies
Check If Your Property Qualifies

The Section 23 Legacy

🏛️ From Section 23 to Living Cities Initiative

How Tax Incentives Transformed Drogheda - And How They're Doing It Again

1988

Section 23 Relief Launched

The Irish government introduces Section 23 tax relief to revitalize neglected urban areas and stimulate property development in designated zones.

How It Worked: Investors could offset 100% of construction/refurbishment costs against rental income - essentially tax-free rental income for 10 years.
2000-2006

Scotch Hall & D Hotel: Section 23 Transforms Drogheda

Edward Holdings develops the landmark €200 million Scotch Hall mixed-use development on Drogheda's waterfront, converting industrial wasteland into a vibrant community hub.

What Section 23 Delivered: 24,000m² shopping centre with 52+ shops • 140 apartments • 104-room 4-star D Hotel • Office space for national & international tenants • New pedestrian bridge over River Boyne • Restoration of Victorian warehouses • Jobs for hundreds

The Impact: Section 23 incentives made this massive regeneration financially viable, bringing Drogheda's derelict south bank back to life.

2006-2008

Section 23 Extended, Then Ended

After multiple extensions, Section 23 relief phases out as concerns grow about oversupply and speculative development. The property crash follows.

Lessons Learned: Section 23 worked brilliantly for urban regeneration but needed better controls to prevent over-development in unsuitable areas. The upcoming LCI incorporates these lessons.
2013

Living City Initiative Launched

Government introduces a more targeted successor to Section 23, initially covering Dublin, Cork, Galway, Kilkenny, Limerick, and Waterford.

Key Difference: Focus on refurbishment of existing pre-1913 buildings, not new construction. Emphasis on bringing vacant historic buildings back to life.

2011-2025

Drogheda City Status Group Campaigns

Over a decade of advocacy by DCSG, local TDs, and community groups pushing for Drogheda's inclusion in urban regeneration schemes.

Campaign Wins: Evidence-based submissions showing Drogheda exceeds 50,000 population • Documented infrastructure gaps • Pressure on government for city-scale treatment • Living City Initiative inclusion secured
October 2025

Drogheda Included in LCI - Budget 2026

Tánaiste confirms Drogheda and Dundalk will join the Living Cities Initiative, alongside Athlone, Letterkenny, and Sligo.

Enhanced Benefits: Eligibility extended to pre-1975 buildings for residential use • Up to €300,000 commercial property relief with NO age restriction • NEW "Living over the shop" category with no age restriction • Scheme runs until 2030
April 2026

LCI Goes Live in Drogheda - TODAY!

Tánaiste Simon Harris signs orders formally designating Drogheda's Special Regeneration Area. Property owners can now apply for tax relief.

What This Means: Hundreds of vacant and derelict buildings now eligible for up to €300,000 in tax relief • Town centre revival begins • Jobs created in construction and retail • New homes above shops • Community spirit restored

Your Turn: Property owners in West Street, Laurence Street, the quays, and across Drogheda's historic core can now transform their buildings with government support.

Section 23 vs Living Cities Initiative: What's Different?

📜 Section 23 Relief (1988-2008)

  • Tax relief on NEW construction and refurbishment
  • 100% of costs offset against rental income
  • 10-year relief period
  • Broad geographic scope - sometimes too broad
  • Led to some oversupply and speculation
  • Delivered Scotch Hall, D Hotel, and hundreds of apartments in Drogheda

🏛️ Living Cities Initiative (2013-2030)

  • Focus on REFURBISHMENT of existing buildings
  • Up to €300,000 relief for commercial properties
  • 7-10 year relief periods depending on use
  • Tightly defined Special Regeneration Areas
  • Prioritizes vacant and derelict buildings
  • NEW "Living Over the Shop" - no age restriction
  • Commercial/Retail - no age restriction
  • Residential only - pre-1975 buildings
Bottom Line: Living Cities Initiative takes Section 23's proven success formula and refines it - targeting the buildings and areas that need it most, without the risk of oversupply. It's Section 23 2.0, designed specifically for towns like Drogheda.

The Drogheda Opportunity: By The Numbers

€300K Max Tax Relief per Commercial Property (Any Age)
2030 Scheme Runs Until
Pre-1975 Residential Use Only
NEW 2026 Living Over Shop - No Age Limit
What Could LCI Do For Drogheda? Based on Section 23's track record and LCI's success in other cities, this scheme could deliver: 200+ refurbished residential units above shops • 50+ restored commercial premises • Hundreds of construction jobs • Revitalized West Street, Laurence Street, and quayside areas • Increased footfall for existing businesses • Community pride restored

Be Part of Drogheda's Next Chapter

Section 23 gave us Scotch Hall. The Living Cities Initiative will give us so much more - but only if we use it.

Property owners: Check your eligibility and start planning your refurbishment.
Residents: Join Drogheda City Now to support our town's transformation.

Join Drogheda City Now

🏛️ Living Cities Initiative

Check if your Drogheda property qualifies for tax relief

What is the LCI? A tax incentive offering up to €300,000 in relief for refurbishing buildings in Drogheda's historic town centre. Important: Commercial/retail and "Living Over the Shop" conversions have NO building age restriction. Pre-1975 requirement applies to residential use only.

Your Questions Answered

  • Section 23 (1988-2008) provided tax relief for new construction and refurbishment, leading to landmark developments like Scotch Hall and the D Hotel. The Living Cities Initiative is more targeted - it focuses specifically on refurbishing existing buildings in tightly-defined historic areas, with better controls to prevent oversupply. Think of it as Section 23 2.0, refined based on lessons learned.

  • Yes! If you're using it for commercial/retail purposes or converting it for "Living Over the Shop," there is NO building age restriction. The pre-1975 requirement only applies to purely residential use (own home or rental property). This is great news for newer buildings in the town centre!

  • This is a BRAND NEW category introduced in Budget 2026 specifically to encourage conversion of vacant commercial space (especially upper floors above shops) into residential units. The game-changer: NO building age restriction. Even a shop built in 1990 can convert its upper floors to apartments and qualify for tax relief.

  • Exactly! Here's the breakdown:

    • Commercial/Retail: No age restriction - any building qualifies

    • Living Over the Shop: No age restriction - any building qualifies (NEW 2026!)

    • Residential (own home or rental): Pre-1975 buildings only

  • It depends on your property type and use:

    • Commercial properties: Up to €300,000 in accelerated capital allowances over 10 years

    • Owner-occupier residential: 10% of qualifying expenditure per year for 10 years against your income tax

    • Rental residential: Relief against rental income for 7 years

    Use our eligibility checker above for an estimate based on your renovation costs.

  • The SRA includes Drogheda's historic town centre and quaysides: West Street, Laurence Street, Shop Street, Fair Street, Peter Street, the North and South Strands, Scotch Hall area, Millmount, and surrounding streets. Check the official map from Louth County Council or use our eligibility checker.

Living Cities Initiative Drogheda - Quick Facts

What: Government tax relief scheme for building refurbishment
Where: Drogheda Special Regeneration Area (town centre)
How Much: Up to €300,000 for commercial properties
Age Requirement:

  • Commercial/Retail: NO age restriction ✅
  • Living Over the Shop: NO age restriction ✅ (NEW 2026)
  • Residential: Pre-1975 buildings only

Timeline: Scheme runs until 2030
Status: Active since April 2026
Check Eligibility: Free tool available above