In Budget 2024, the Enhanced Help to Buy (HTB) Scheme was extended to the 31st of December 2025. The HTB Scheme gives a refund on the income tax and Deposit Interest Tax (DIRT) you have paid in Ireland for the 4 years before the year you apply for the scheme. Those who qualify for the scheme can claim relief on the lesser of:
- €30,000.00
- 10% of the market value of a new property
- 10% of the approved valuation of a self-build property
- The amount of income tax and DIRT you have paid for the 4 years before the year you apply for the scheme.
In order to qualify for the HTB Scheme you must meet the following criteria:
- You must be a first-time buyer.
- The property you are purchasing must be a self-build or new residential property.
- The contract to purchase the new property or draw down on a self-build mortgage must be signed by the 31st of December 2025.
- If you are buying/building the property with another person, they must also be a first-time buyer.
- You must take out a mortgage with a qualifying lender and the mortgage must be at least 70% of:
- The purchase value of the property you are purchasing.
- The valuation approved by your lender if you are building the property.
- You must meet the following tax requirements to qualify for the HTB scheme:
- You must be fully tax complaint for the 4 years before the year you make the claim.
- You must complete Revenue online Form 12 (PAYE taxpayer) or Form 11 (self-assessed taxpayer) for each of those 4 years and pay any outstanding taxes that fall due.
- You must be registered with Revenue’s online myAccount service, if you are a PAYE taxpayer or registered with Revenue Online Service ROS, if you are a self-assessed taxpayer.
- Your new home must meet the following criteria to qualify for the HTB Scheme:
- The property you buy/build must be a new residential property i.e. the property must never have been used or have been capable for use as a residential property before.
- The market value of the property must be €500,000.00 or less.
- If you are building the property, the approved valuation by a qualifying lender must be €500,000.00 or less.
- If you are buying a new property, the developer/contractor must be approved by Revenue. Revenue provides a full list of approved developers/contractors on their website.
- You must live in the property for at least 5 years from the date it is habitable.
You will not qualify for the HTB Scheme if:
- You have previously purchased or built a house or an apartment, either by yourself or with another person. This also applies if you have subsequently separated/divorced from that person an no longer have an interest in that property.
- You have owned or own a property in another country.
- You do not intend on living in the property as your principal residence for at least 5 years after it is habitable. If you do not live in the property for a minimum of 5 years you will have to pay back the HTB payment.
- You are not taking out a mortgage to purchase/build the property.
The maximum payment under the HTB Scheme is capped at €30,000.00 per qualifying property regardless of how many people are involved in the purchase.
For more information on this or any property related matter please contact Pauline Horkan, Donna Phelan or SallyAnn McCoy on 01 2960666.
