Help to Buy (HTB) scheme
The Help to Buy Scheme incentive is designed to help first-time buyers with the deposit required to buy a new home. The scheme provides a refund of Tax you have paid over the previous 4 tax years.
The following is a summary of how the Help to Buy Scheme works for First Time Buyers seeking a mortgage.
Overview:
The Revenue Help to Buy Scheme is a government initiative aimed at assisting first-time buyers in purchasing a new-build or self-build residential property.
The scheme provides a tax rebate of up to 10% of the property’s value, up to a maximum of €30,000.
Who qualifies:
First-time buyers who are tax residents in Ireland are eligible for the scheme. You must be buying or building a qualifying property as your main residence. You and your partner (if applicable) must not have previously owned or purchased a property in Ireland or abroad.
Qualifying property:
The Help to buy scheme incentive only applies to properties that are bought or built as the first-time buyer’s home. It does not cover investment properties. Cash buyers do not qualify.
You must take out a mortgage of at least 70% of the purchase price (or, for a self-build, 70% of the valuation approved by the mortgage provider).
With effect from 1 January 2017, the Help to Buy scheme only applies to properties costing €500,000 or less.
You must occupy the property for 5 years from the date that it is habitable.
How much can you claim:
The tax rebate is calculated as 10% of the purchase price or construction cost (excluding VAT), up to a maximum of €30,000. The tax rebate is claimed as a refund of income tax and deposit interest retention tax (DIRT) paid over the previous four years, subject to certain conditions.
Tax requirements
If you pay tax through PAYE, you must be registered for Revenue’s online myAccount service. If you are a self-assessed taxpayer, you must be registered for the Revenue Online Service ROS.
In all cases, you must be fully tax-compliant in respect of the 4 years immediately prior to your claim.
How to apply
You need to apply for the Help to buy scheme on the Revenue.ie website.
You will need a Revenue MyAccount if PAYE or if you are self employed then you can apply via your ROS.ie account.
Further information:
More details on the Revenue Help to Buy Scheme, including the application process and specific requirements, can be found on the Revenue website.
Your MortgageLine Adviser will also be able to help and answer all of your questions on the Help to buy scheme.
