Help-to-Buy Incentive

If you’re looking to buy a home in Ireland for the first time, the Help-to-Buy Incentive will give you a refund of income tax and DIRT paid in Ireland from the last 4 years.

You must buy or build the property to live in as your own home and to claim you must:

• Be a first-time buyer
• Buy or build the property between 1 January 2017 and 31 December 2029
• Live in the property as your main home for five years after you buy or build it
• Be tax compliant or if you’re self-assessed you must have tax clearance

You must not have built or bought an apartment or house previously on your own or jointly with another person. If you’re buying or building a property with anyone else, they must also be first-time buyers.

Anyone buying a property must have signed the contract to buy that property on or after 1 January 2017. If self-building, you must have drawn down the first part of the mortgage on or after that date.

The contractor you’re buying your home from must be approved by Revenue. You can check the list of approved developers and contractors to make sure they’re approved.

The property must be:

• your home
• newly built where the construction is subject to Value Added Tax (VAT) in Ireland

The property must not have been used or been suitable to use as a residential home previously. If the property was non-residential but is converted for residential use, it may qualify for HTB.

However, if you buy or build the property as an investment, it will not qualify.

Purchase value

The purchase value of the property must be €500,000 or less to qualify for the Help to Buy scheme. The purchase value of a new build means the price you bought it for. For self-builds, the purchase value is the approved valuation by the lender at the time you took out the mortgage.

Mortgage

For a mortgage to qualify, you must take out your mortgage on the property with a qualifying lender and it should be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property and you’re permitted to have a guarantor on the loan.

How much can I claim?

You can claim the lesser of these:

• €30,000
• 10% of the purchase value of a new home or of the approved valuation of the property (in the case of self-builds)
• amount of Income Tax and Deposit Interest Retention Tax (DIRT) you paid in the four years before your purchase or self-build

The maximum payment is €20,000 per property. This cap applies regardless of how many people enter into a contract to buy a house Universal Social Charge (USC) or Pay Related Social Insurance (PRSI) aren’t taken into account when calculating how much you can claim.

How will I be paid the refund?.

• If you buy a new build, the refund is paid to the contractor
• If you self-build the property, the refund will be paid to the bank account of your loan provider

What do I have to do?

If you pay tax through PAYE you must submit a Form 12 for each year you want to apply for a payment and pay any outstanding tax due. You can do this on Revenue online or contact Taxback for more info. 

You can apply as an individual or part of a group if you’re buying or building with other people. You must complete a declaration and select the years you want to use for a refund. You can do this through the Revenue’s myEnquiries online system. When you’ve signed the contract for your home and are ready to make your claim, complete the following:

1. Upload the following information about your application through MyEnquiries:

• copy of the signed contract
• evidence of mortgage (including loan-to-value ratio)
• proof of drawdown of the first part of the mortgage if it is self-build
• take note of the MyEnquiries reference number

2. Log in to Help to Buy through myAccount or Revenue Online Service (ROS) and make your claim. You’ll need your myEnquiries reference number and you’ll be asked to confirm:

• the property
• purchase price
• date of completion
• mortgage
• amount of deposit already paid

If you’re applying with others, you’ll also need to confirm the portion of the refund to be refunded to each person. If you’re self-building, you’ll need to provide the BIC and IBAN of the loan bank account.

You’ll be given a claim reference once you submit all the required information and if you need to make a correction, you can cancel your claim and submit a new one.

3. Once you submit your claim you should advise your developer or contractor (or solicitor if you're self-building) and give them your claim reference (issued to you after step 2) and access code (issued to you when you submitted your application)

  The information you have provided will need to be verified by the:

• developer or contractor in the case of a new build
• solicitor acting on your behalf in the case of a self-build

The refund you finally receive is limited to 10% of the purchase price of the house and this may mean it’s different to the maximum relief amount you were given at the application stage.