An opportunity to revitalise the derelict parts of Sligo city centre

"The main purpose of this scheme and especially for its current extension, is to increase the availability of residential property and to revitalise certain city/town centres around the country that have high levels of vacancy, dereliction and under use. This scheme when originally introduced provided tax relief for certain commercial property, as well as for residential owner-occupiers on refurbishment and conversion works (extended on 1st January 2017 to certain residential landlords) located in the historic city centres of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford."

"From 8th April 2026 (with signed orders by Tánaiste, Simon Harris, to formally designate 5 additional towns) the LCI has now been extended as a measure to tackle vacancy and dereliction in the 'Special Regeneration Areas' (SRAs) of Athlone, Drogheda, Dundalk, Letterkenny and Sligo. The qualifying period for the Living City Initiative has also now been extended from 31 December 2027 to 31 December 2030."

"Therefore for the purposes of this article (which specifically deals with these 5 rural towns) the qualifying period is from 8th April 2026 to 31st December 2030. It is important to note that tax relief is not available on 'new build' projects, but is available only on the direct costs of refurbishment and conversion works e.g. on building materials, labour costs, architects/engineers fees, interest on monies borrowed to fund the refurbishment/conversion as well as first installed fitted kitchens, bathroom suites, fixed flooring/lighting etc."

The Finance Act 2025 introduced enhanced tax incentives for owner-occupiers and landlords of residential and commercial property in designated border and midland towns. The scheme extends the Living City Initiative originally introduced on 5 May 2015. The purpose is to increase residential property availability and revitalize city and town centres with high vacancy, dereliction, and underuse. The initiative previously provided tax relief for certain commercial property and for residential owner-occupiers on refurbishment and conversion works, later extended to certain residential landlords. From 8 April 2026, it applies to Special Regeneration Areas in Athlone, Drogheda, Dundalk, Letterkenny, and Sligo. The qualifying period runs until 31 December 2030. Relief applies to refurbishment and conversion direct costs, not new builds, and excludes certain costs such as personal labour and interest on borrowings to purchase the property.

Read at Irish Independent