First-time buyers either purchasing newly built homes or building their own can apply for rebates via a form available at the website of the Revenue Commissioners – revenue.ie.
How does it work?
First-time buyers either purchasing newly built homes or building their own can apply for rebates via a form available at the website of the Revenue Commissioners – revenue.ie. The scheme allows purchasers to claim back a rebate on income tax or Deposit Interest Retention Tax (Dirt) on bank savings paid over the four years prior to the year they are buying or building their first home. If they have worked in Ireland for fewer than four years, or have paid only limited income tax, the amount available in any rebate will be lower.
Are there any limits?
The maximum rebate is 5 per cent of the value of the property, up to a maximum of €20,000. The rebate is available only on properties valued at €500,000 or less after an original, higher limit of €600,000 was reduced during the ongoing passage of the measure through the Oireachtas amid criticisms that it amounted to a “mansion grant”.
Applicants must be borrowing at least 70 per cent of the value of the property. Under revised Central Bank rules, first-time buyers can borrow up to 90 per cent of the value of the property, so the rebate means most first-time buyers will need a deposit of just 5 per cent to secure their home.
If I have already bought, can I still apply?
Anyone who bought their first home since July 19th last year – as long as the property was newly built – is eligible to apply for the rebate. For people buying this year, or at some point between now and the end of 2019, the money will be paid to the developer directly. Applicants who bought their home in the latter part of 2016 will have the money paid into their accounts, as will those building their own homes. The scheme is available only to owner-occupiers, not to the investment or buy-to-let market, and applicants will need to live in the property for five years or face a potential clawback of the rebate granted.