What is the Help to Buy Scheme?

The Help to Buy scheme was introduced by the Irish government to support first-time buyers in purchasing a new-build or self-build property. Eligible buyers can receive a refund of income tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four tax years, up to a maximum rebate amount of 10% of the purchase price of the property or €30,000, whichever is the lesser. The aim of the scheme is to ease the financial burden associated with buying a home.

Eligibility Criteria:

To qualify for the Help to Buy scheme, you must meet specific criteria. These include:

• First-Time Buyer Status: You should not have previously purchased or built a residential property in Ireland or anywhere else in the world. If you’re purchasing a home with someone else, they must also be a first-time buyer.
• Property Type: The scheme applies to new-build or self-build properties only. Second-hand homes are not eligible.
• Purchase Price Limit: The maximum purchase price eligible for the scheme is €500,000. Properties priced above this threshold are not eligible for the tax rebate.
• Occupancy Requirement: You must occupy the purchased property as your primary residence for a minimum period of five years.
• Mortgage Amount: Applicants must be taking out a mortgage for a minimum of 70% of the purchase price.

Stages of Applying and Using the Help to Buy Scheme: 

1. Application Stage:

• Submit your application and select the years you wish to receive a refund for. This can be done through myAccount or Revenue Online Service (ROS), ensuring accuracy and completeness.
• Once it is confirmed that you are tax compliant, an Application Number will be provided.

2. Approval Stage:

• Once your application is approved, you will be advised of the maximum amount available to you.

3. Claim Stage:

• Once you find a suitable property, you will need to provide the property address and purchase price, along with the builders details.
• Provide evidence of your mortgage, such as a signed copy of the contract if purchasing a new property or proof of the initial mortgage drawdown and valuation report if self-building.
• A Claim Number will be provided once the claim is submitted.

4. Verification Stage:

• The information and documentation provided during the claim stage will be verified by the qualified contractor (in the case of purchasing a new property) or your solicitor (if self-building).
• If everything is in order, your application will progress to the next stage.

5. Payment and Usage:

• Once your application is fully processed and verified, the tax rebate will be paid.
• The refund is paid directly to the builder for a new property purchase or to a bank account held with your loan provider if self-building.