Guide

Help to Buy in Ireland: up to €30,000 back for first-time buyers

Updated

Help to Buy is a refund of tax you have already paid, not a grant, and it goes to the contractor rather than to you. Both facts change how you plan the deposit.

What it is

Revenue describes Help to Buy as "an incentive for first-time property purchasers. It will help you with the deposit you need to purchase or self-build a new house or apartment. You must purchase or self-build the property to live in as your home." Where the conditions are met you receive "a refund of Irish Income Tax and Deposit Interest Retention Tax (DIRT) you paid in Ireland", drawn from "the four tax years prior to when you make your application" (Revenue).

How much

Under the enhanced scheme, which covers applications from 23 July 2020 to 31 December 2029, "the amount that you can claim is the lesser of: €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; or the amount of Income Tax and Deposit Interest Retention Tax (DIRT) you have paid for the four years prior to your application" (Revenue).

The three way test, applied
Purchase value10% of valueThe €30,000 capYour maximum, before the tax paid test
€250,000€25,000€30,000€25,000
€300,000€30,000€30,000€30,000
€450,000€45,000€30,000€30,000

Then apply the third limb: whatever the property value allows, you cannot get back more Income Tax and DIRT than you actually paid in the four years before your application. Revenue confirms that "Universal Social Charge (USC) or Pay Related Social Insurance (PRSI) are not taken into account when calculating how much you can claim."

The cap is per property, not per buyer

"The maximum payment is €30,000 per qualifying property under the enhanced relief. This cap applies regardless of how many people enter into a contract to purchase the qualifying property." Two first-time buyers buying together share one €30,000 ceiling, though both can contribute their own tax paid towards reaching it.

Where the money goes

  • Buying from a contractor: "If you purchase a qualifying property, the refund will be paid to your qualifying contractor." It reduces what you have to fund, but it never lands in your own account.
  • Self-build: "the refund will be paid to a bank account you hold with your mortgage provider."
  • New homes only. The scheme is for purchasing or self-building a new house or apartment to live in as your home. A second-hand house does not qualify.
  • Revenue can claw it back. Its own guidance carries a section on that, so read the conditions on occupation and ownership before you rely on the money.

Your solicitor's part

Revenue publishes guidance specifically for "applicants, lending institutions, solicitors and contractors", because the claim stage needs your solicitor's or contractor's verification. Tell the firm you are applying for Help to Buy at the first meeting so the claim runs alongside the contract rather than behind it.

Figures and dates were read from Revenue on the updated date above. Eligibility conditions, including the loan to value requirement and tax compliance, are set by Revenue: check its Help to Buy pages or ask your solicitor before you count on the refund.

Questions, answered directly

How much is Help to Buy in Ireland?

Up to €30,000 under the enhanced scheme, for applications from 23 July 2020 to 31 December 2029. The actual amount is the lesser of €30,000, 10% of the purchase value or approved valuation, and the Income Tax and DIRT you paid in the four years before applying.

Can two first-time buyers each claim €30,000?

No. Revenue states the €30,000 maximum is per qualifying property and applies regardless of how many people enter into the contract to purchase it.

Does Help to Buy apply to second-hand homes?

No. The scheme covers purchasing or self-building a new house or apartment that you will live in as your home. A second-hand property does not qualify.

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