Source: Government of Ireland
Minister for Housing, Local Government and Heritage, James Browne TD, said:
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.
Notes for Editors
The Living City Initiative (LCI) is a targeted tax incentive aimed at:
- Tackling vacancy and dereliction in urban centres;
- Increasing housing supply through refurbishment and reuse of existing buildings;
- Encouraging people to live in town and city centres; and
- Supporting the regeneration of the retail and commercial core of towns.
The scheme offers relief from income tax or corporation tax for qualifying expenditure on the refurbishment and/or conversion of buildings located in Special Regeneration Areas (SRAs), now extended to include Athlone, Drogheda, Dundalk, Letterkenny and Sligo.
Special Regeneration Areas
SRAs are central urban areas characterised by high levels of vacancy, dereliction and under-use, with a strong stock of older buildings that can be brought back into productive use.
Types of Relief
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.