Help to Buy Scheme

SUMMARY 

Grant / Support Name: Help to Buy Scheme / Enhanced Help to Buy Scheme 

Provider: Irish Government  

Value: Up to €30,000 (or 10% of the property price, whichever is less) 

Overview: The Help to Buy (HTB) Scheme helps first-time buyers to buy a new house or apartment that costs €500,000 or less by offering a one-time tax refund of up to €30,000. This also applies to self-build homes, which are houses built by the owner on their own land to live in. 

Eligibility:  

To qualify for the scheme:  

• You must be a first-time buyer who buys or self-builds a new residential property between 1 January 2017 and 31 December 2029.  

• You will also qualify under the ‘Fresh Start Principle’ if you are divorced or separated and no longer have a financial interest in your former family home. 

• You must take out a mortgage for the property which is at least 70% of the purchase price, or the valuation approved by the mortgage provider if you are building. 

• The purchase price of your intended new home should be 500k or less.

Special Conditions:  

• The property you buy or build must be a newly built residential property and must never have been used or have been suitable for use as a residential before.  

• The contractor or developer you are buying from must be registered with the Revenue Commissioners.  

• You must live in the property for at least five years from the date that it is habitable.

• When ready to claim your grant, you will need a registered solicitor to verify your claim.  

Tax Implications:  

• You must be fully tax compliant for 4 years immediately before your claim. 

• You will need to complete online form 12 (PAYE) and Form 11 (self-assessed) for each of those 4 years and be registered with Revenue’s online service.  

ARTICLE  

The Help to Buy (HTB) scheme helps first-time buyers with the deposit for a new house or apartment by offering a tax refund. This refund comes from any income tax and Deposit Interest Retention Tax (DIRT) paid in Ireland in the previous four years. 

HOW TO QUALIFY

To qualify, you must live in the property as your main home. The scheme is available for properties valued at €500,000 or less with a loan-to-value ratio above 70% and offers up to 10% of the property's value or €30,000, whichever is less. For example, if you buy a house for €300,000, you can get up to €30,000. But if the house costs €400,000, the maximum refund is still €30,000. 

Any first-time buyer of a new home can apply, but if you’re buying with someone else, both of you must be first-time buyers to qualify. The scheme also applies to those under the Fresh Start principle, such as divorced or separated individuals with no interest in the family home, or those who have undergone personal insolvency or bankruptcy. 

Only new builds and self-builds are eligible. Conversions and restorations of old or derelict homes do not qualify, although if you are converting a non-domestic building for residential use you may qualify. You must also live in the property as your main residence for at least five years, or Revenue may reclaim the refund. 

If you buy a new build, the refund goes directly to the contractor. If you self-build, it’s paid to a bank account you hold with your loan provider. 

HOW TO APPLY

You must apply for HTB online at revenue.ie: 

• If you're a self-assessed taxpayer, use ROS (Revenue Online Service). 

• If you're a PAYE employee, use myAccount. 

Stages of the HTB Process 

There are three stages to the HTB process: 

Application Stage 

• You can apply individually or as a couple. 

• All members must be first-time buyers. or qualify under the ‘Fresh Start principle’. 

• The application checks your tax compliance. 

• If compliant, you'll receive a summary with potential maximum tax relief, an Application Number, and an Access Code in your MyEnquiries inbox which you should keep safe for the next steps. 

Claim Stage 

• You will need to provide details including the property address, purchase value, mortgage details, and Affordable Dwelling Contribution (if applicable). 

Verification Stage 

• Your claim needs to be verified by an eligible verifier, which is a Qualifying Contractor for new builds or a solicitor for self-building. 

• You will need to provide your Claim Number and Access Code issued earlier. 

• The refund is limited to 10% of the property's purchase value or approved valuation, which may differ from the maximum relief advised earlier. 

Example: Anne and Barry are first-time buyers looking to buy a new home priced at €310,000. With the Help to Buy Scheme, they can receive up to €30,000 towards their deposit. This reduces their required deposit amount to €1,000 (10% of €310,000 minus the €30,000 tax refund). Consequently, they would need a mortgage of €279,000 to complete the purchase of their home, after subtracting the Help to Buy deposit from the total purchase price. 

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