Athlone has been formally designated for tax-relief property refurbishment scheme

Athlone has today been formally designated as part of the Living City Initiative.

From today, property owners in parts of Athlone, Drogheda, Dundalk, Letterkenny and Sligo will be eligible for tax relief to refurbish or convert buildings for residential or commercial use.

The Living City Initiative is already in place in Dublin, Cork, Galway, Kilkenny, Limerick and Waterford.

Maps showing the designated area of Athlone and the other four towns have also been published.

The local authorities with responsibility for the new towns being brought under the Living City Initiative had each submitted proposals for Special Regeneration Area (SRA) maps, 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.

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.

Speaking today, the Tánaiste and Minister of Finance Simon Harris, who signed the order, said: “I am pleased to designate the Living City Initiative Special Regeneration Areas in Athlone, Drogheda, Dundalk, Letterkenny and Sligo.

“This expansion is about supporting regeneration, bringing vacant and derelict buildings back into use, increasing the supply of homes, and rebuilding the social and economic fabric of our town centres.

“By supporting refurbishment and encouraging ‘living over the shop’, we can create more homes in our towns, reduce vacancy, and restore vibrancy to our main streets.

“I want to see people living again in the hearts of our towns and villages – this initiative is a practical step towards making that happen.”

The news has been welcomed by local Minister of State for the OPW, Kevin ‘Boxer’ Moran, who said property owners in the designated part of Athlone can now apply for tax relief to refurbish homes, upgrade rental and commercial premises, or convert buildings for residential or business use under the Living City Initiative.

The Living City Initiative supports a range of refurbishment and conversion works, including a new form of relief introduced in Budget 2026 to encourage the conversion of commercial premises into residential homes — commonly referred to as “Living Over the Shop.” This measure aims to unlock vacant space above shops and create more homes in town centres.

Minister Moran said: “I am very pleased that the Living City Initiative is now up and running in Athlone. This expansion is about supporting regeneration, bringing vacant and derelict buildings back into use, increasing the supply of homes, and rebuilding the social and economic fabric of our town centres.

“By supporting refurbishment and encouraging living over the shop, we can create more homes in our towns, reduce vacancy, and restore vibrancy to our main streets. I want to see people living again in the hearts of our towns and villages, and this initiative is a practical step towards making that happen.”

As part of enhancements announced 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, 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 relief has no building age restriction.

The other elements of the scheme are owner-occupier residential relief, which provides income tax relief for individuals refurbishing properties for use as their main residence, supporting the return of people to town centres, and rented residential and commercial/retail relief, which offers accelerated capital allowances to support investment in rental housing and commercial premises.