From Derelict to Goldmine: How the 'New Section 23' is Set to Spin Drogheda’s Town Centre
For decades, we’ve walked past the beautiful but crumbling upper floors of Westgate, Shop Street, and Laurence Street, wondering why nobody fixes them up. The answer was always "the numbers don't add up."
That changed with Budget 2026.
Drogheda has officially been added to the Living City Initiative (LCI). If you’ve ever envied the tax breaks that turned Dublin’s Temple Bar from a slum into a cultural hub, listen up: It’s our turn.
What is the LCI?( Living City Initiative)
Think of the LCI as a targeted tax refund for anyone brave enough to renovate a building in Drogheda’s Special Regeneration Area (SRA). Unlike the old Section 23—which mostly lined the pockets of big developers—the LCI is built for you: the local shop owner, the first-time buyer, and the retail investor.
The "Business Case" for Local Folks
Here is how you can use this to "spin" a property in the town centre:
1. The "First-Occupant" Flip
The Strategy: You buy a derelict pre-1975 building, renovate it, and sell it.
The Pitch: Because of the LCI rules, the first person to live in that house can claim 100% of your renovation costs against their income tax.
The Math: If you spend €80,000 fixing it up, your buyer (if they are a high-rate taxpayer) effectively gets a €32,000 tax refund over 10 years. That makes your property the most attractive "buy" on the market.
2. The "Over the Shop" Revolution
The Strategy: Own a retail unit? Stop using the top floors for storage. Convert them into high-spec apartments.
The Pitch: The LCI allows you to offset those conversion costs against your rental income or business profits. With the €300,000 commercial cap, you can effectively modernise your entire building and have the Revenue Commissioners foot a massive chunk of the bill.
3. The "Yield Play" for Investors
The Strategy: Buy, renovate, and rent out.
The Pitch: Landlords in the Drogheda SRA can claim Capital Allowances (15% for the first 6 years). This means your rental income is largely "tax-shielded" until you’ve recovered your investment. In a town with a chronic housing shortage, you get high demand and low tax.
Why Drogheda? Why Now?
Drogheda isn't just getting tax breaks; it's getting an identity shift. Between the €7m Westgate 2040 project and the new THRIVE funding, the state is pouring concrete into our streets.
The LCI is the "bridge" that makes it profitable for us—the locals—to own the future of our town rather than waiting for an international fund to do it for us.
How to Start
Check the Map: Contact Louth County Council to confirm the building is in the Special Regeneration Area.
Get the Letter: You must get a "Letter of Certification" from the Council before you start swinging a hammer.
Plan for 1975: Ensure the building was built before 1975 to qualify for the residential side of the scheme.
Drogheda is no longer just a "commuter town." With these tax breaks, it’s a construction site for a new Irish city.
The "Double-Whammy" Strategy: Stacking Grants and Tax Breaks
If you really want to spin a property in Drogheda, you don't just use the tax break—you stack it with the Vacant Property Refurbishment Grant. This is how the pros are doing it in 2026:
Step 1: The Upfront Cash (The Grant)
If the building has been vacant for two years or more, you can apply for the Vacant Property Refurbishment Grant:
€50,000 for a standard vacant home.
€70,000 if the building is "derelict" (structurally unsound).
Bonus: You can now use this for properties you intend to rent out, not just live in.
Step 2: The Long-Term Tax Shield (The LCI)
Once you've used that €70k grant to do the heavy lifting (roof, windows, wiring), any additional money you spend out of your own pocket qualifies for the Living City Initiative tax relief.
The Result: You get the "big check" from the Council to start the work, and then you pay zero income tax for years while you're living in or renting out the finished product.
Why this is a "No-Brainer" for Drogheda
Drogheda has a higher-than-average rate of "over-the-shop" vacancy. By stacking these two, a local investor could theoretically take a derelict shell on West Street and turn it into a high-end apartment with 60-70% of the total cost covered by a mix of upfront grants and future tax savings.
Pro-Tip for your readers: You must apply for the Grant through the Vacant Homes Officer and the LCI Tax Break through the Planning Department. They are two different doors in the same Council building!
The "Drogheda Power List" (Who to Email)
For the €50k-€70k Cash Grant:
Contact the Vacant Homes Officer at Louth County Council. They handle the Croí Cónaithe (Vacant Property Refurbishment Grant).
Email: vacanthomes@louthcoco.ie
Phone: 042 933 5457For the 10-Year Tax Break (LCI):
Contact the Planning Department to confirm your building is in the Special Regeneration Area (SRA) and to apply for your "Letter of Certification."
Email: planning@louthcoco.ie
Phone: 041 987 6137 (Drogheda Office)For the Big Picture (Westgate 2040):
If your building is near the Abbey Lane or Westgate area, check in with the Regeneration Team to see how the €7m public works might boost your property value.
Email: regeneration@louthcoco.ie
Timing is everything. The LCI relief and the Vacant Property Grant require you to get approval before you start work. If you swing a hammer before that Letter of Certification arrives, you could lose out on tens of thousands in tax breaks.