Help to Buy Scheme Ireland: What First-Time Buyers Need to Know

What Is the Help to Buy Scheme?

The Help to Buy Scheme is a government program introduced in 2017 to help first-time buyers pay back the deposit on a new-build home. The scheme permits quality candidates to get a reimbursement of the income tax and DIRT (Deposit Interest Retention Tax) paid in the past four tax years. The refund may then be used to assist in the deposit expected in purchasing or constructing a qualifying home.

Help to Buy Scheme Ireland Eligibility

To be eligible for the Help to Buy Scheme in Ireland, you will need to fulfil the following requirements:

• Be a first-time buyer (you should not have bought or constructed a residence previously, either in the past individually or as a joint purchase).
• Buy a new-build home or self-build your residence.
• Reside in the property as your main private home for a minimum period of five years.
• Secure a mortgage of no less than 70% of the property's purchase price.
• Purchase from a Revenue-approved builder or developer.

How Much Can You Claim?

• The sum you can claim under the Help to Buy Scheme is the lower of: €30,000 (the maximum limit)
• 10% of the purchase price of the property
• The combined sum of income tax and DIRT paid over the last four years of assessment

How to Apply for the Help to Buy Scheme in Ireland

The procedure to apply to the Help to Buy Scheme consists of three major steps:

Application (Online via Revenue MyAccount)

Use MyAccount or ROS to submit your application to Revenue self-assessment and include your PPS number and details of your income, tax paid and property details.

Get Approval

When you find out that you are eligible, you will get your Application Number and Access Code, which you will provide to your builder and mortgage provider.

Claim the Relief

Once you have signed your contract and have confirmed your mortgage, you can make your claim with Revenue. The money will be directly remitted to the builder or solicitor in the purchase.

Things to Keep in Mind

• The HTB Scheme will operate until 31st December 2025 unless otherwise reviewed by the government.
• You should be completely tax-compliant and have filed all your tax returns.
• You might be required to pay the relief partially or even fully in case you dispose of, or lease the building after five years of ownership.
• The plan will only work on new builds, rather than second-hand purchases.

Conclusion

The Irish Help to Buy scheme has helped those first-time buyers get on the property ladder. The scheme has facilitated entry into modern, energy-efficient new build homes by creating a deposit gap, as significant contributions towards income tax refund are provided under the scheme. Are you a first-time buyer with your eyes set on making the plunge? It might be your most brilliant initial step to hunt down the HTB Scheme.