The current cost of living crisis in Ireland has many people putting big purchases on hold, particularly those planning to make their way onto the property ladder.
If getting to your goal of being a homeowner is a mere stretch of €30,000 or less, the government has a scheme in place for first-time buyers to get you there.
Getting approved for a mortgage in Ireland can be a daunting process, so the Help to Buy Scheme supports those wishing to purchase a newly-built house or apartment as their first home.
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It also applies to once-off self-build homes and is only aimed at properties that cost €500,000 or less.
The scheme gives a refund of the income tax and Deposit Interest Retention Tax you have paid in Ireland over the previous four tax years - and the best part is anyone who is a PAYE worker is eligible, there is no means test.
Therefore, if you are a first-time buyer who either buys or self-builds a new residential property between 19 July 2016 and 31 December 2024, you may be entitled to claim a refund of income tax and DIRT that you paid over the previous 4 tax years.
You can claim relief on the lesser of:
- €30,000
- 10% of the purchase price of a new build property
- 10% of the approved valuation of a self-build property
- The amount of income tax and DIRT you paid for the previous 4 years
The maximum payment is €30,000 per qualifying property under the enhanced relief and this cap applies regardless of how many people enter into a contract to purchase the property.
There are a few contingencies that must be met such as, if you are buying (or self-building) the property with someone else, they must also be a first-time buyer.
You will not qualify if you have previously bought or built a property, either individually or jointly with anyone else, even if you are now separated or divorced from that person.
You will also not qualify if you have owned a home abroad.
You must also take out a mortgage of at least 70% of:
- The purchase price of the property if you are buying your newly built home
- The valuation approved by the mortgage provider, if you are building your home
Other rules also insist you must live in the property for 5 years from the date that it is habitable.
To find out more about the scheme and how to apply, click here.
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