Help to Buy Incentive
The Help to Buy incentive was introduced as part of Budget 2017 and is scheduled to run until 31 December 2021. The incentive helps first time buyers who are buying or building their own home to pay their mortgage deposit by giving them a 5% rebate based on the value of their house. The incentive provides for a refund of income tax and DIRT paid over the previous 4 tax years.
Who can apply?
You must be a first-time buyer of a new residential property between 19 July 2016 and 31December 2021. To qualify as a first-time buyer under the incentive, you must not have previously purchased or built a home on your own or with any other person. If you are buying the property with someone else, they must also be a first-time buyer. Cash purchasers do not qualify and you must take out a mortgage of at least 70% of the purchase price (or self-build, 70% of the valuation)
What types of property qualify?
The property must be bought or built as your home and the incentive does not cover investment properties. With effect from 1 January 2017, the incentive only covers properties costing €500,000 or less. You must also ensure that your builder is registered as a Qualified Contractor with Revenue if you wish to claim a refund under the incentive. You must occupy the property for 5 years from the date it is habitable.
How much can you claim?
The maximum amount you can claim is €20,000 or 5% of the purchase price of the new home (or self builds it is 5% of the completion value of the property). The refund is paid directly to the contractor.
How to apply?
You can apply online through Revenue’s MyAccount