Help To Buy Scheme
First Time Buyers: Get the help you need to make that first purchase possible
What is the Help to Buy Scheme?
The Help To Buy Scheme is a government initiative targeted at first-time buyers to help with the purchase or self-build of a new home. It can provide a payment of €30,000 to help with this new home purchase or self-build.
This is funded through a tax rebate by the Government. In order to claim, you must have paid the equivalent amount of income tax and or DIRT in the previous four years. In other words, if you are applying for €20,000, you must have paid at least this much to Revenue over the last four years.
To qualify for the scheme, the property must be valued at less than €500,000, and the buyer must not have previously purchased or built a home, including outside of Ireland. Additionally, the buyer must also occupy the property as their main residence for a period of five years after the purchase date. If you don’t comply with this rule Revenue reserves the right to claw back this refund.
Example of the
Help To Buy Scheme!
Mary is a first-time homebuyer and wants to purchase a new build home worth €300,000. She has a deposit of €30,000 and has been approved for a mortgage of €270,000. Under the Help- to Buy scheme, Mary can get a tax rebate of up to €30,000 which, once approved and verified, will be sent to the builder-developer reducing the overall amount due on the house.
In order to confirm the maximum refund available Mary has to apply online through Revenue’s MyAccount service. This will provide a summary of the maximum refund available within five working days. Once approved, MyAccount also processes this claim.
Important Qualification Rules
- You must have been fully tax compliant in the four years previous to the claim. If you haven't already done so, you'll need to complete a Form 12 (for PAYE workers) and Form 11 (for the self-employed) in respect of each of the four years. You must also pay any outstanding taxes that are due
- The Help-to-Buy scheme is for owner-occupiers only. You can't apply as an investor or a landlord
- Revenue will confirm your application with the contractor that you are buying from, or your solicitor if you are building your own home. Solicitors and contractors need to be registered with Revenue for the Help-to-Buy scheme.
- If your new home is a self-build, it must be a qualifying residence and cannot be a building which was previously used, or suitable for use, as a dwelling. However, Revenue says that properties which have never been used as a dwelling and are now being converted for residential use may qualify.
- You must live in the house for at least five years after you buy or build it.
Steps to Your HTB Approval
- Register with the myAccount service at Revenue. This can be seen on Revenue. i.e, You will need your PPS number, date of birth, and contact information (phone, email, and home address). Self-assessed taxpayers are required to be fully tax compliant.
- If you are employed for each of the years for which you are applying for a tax refund, you must submit a "Form 12" document. The form is known as "Form 11" for self-employed people.
- For the online application process, your solicitor will supply you with a signed copy of the new home contract, which you must upload.
- You will also need to include details about your mortgage and lender.
- The online application will need details of your builder/developer. Once this is submitted your builder will need to verify their details and confirmation of purchase with Revenue.
- The HTB refund will be paid directly to your builder/developer with this deducted from the final purchase price for you.