The Help to Buy Scheme Ireland 2023 allows first time buyers in Ireland to claim 10% of the value of their property, which can be anywhere up to €30,000.
In this article, I will be going into detail about how the Help to Buy scheme (HTB scheme) works, what you have to do to qualify, how much can be available to you, how to get your taxes refunded, how to get up to date on your taxes so you can qualify, and finally how to apply.
1.How does the Help to Buy scheme Ireland 2023 work?
2. How do I know if I qualify for the Help to Buy scheme Ireland 2023?
3. How much is available to me from the Help to Buy scheme Ireland 2023?
4.How will I receive my tax refund from the Help to Buy scheme 2023?
5.How can I get up-to-date on my taxes for the Help to Buy scheme Ireland 2023?
6.How can I apply to the Help to Buy scheme Ireland 2023?
7. A summary of The Help to Buy scheme Ireland 2023.
1. How does the Help to Buy scheme Ireland 2023 work?
The Help to Buy scheme Ireland 2023 is a Government tax refund scheme.
The HTB scheme allows first time buyers to claim 10% of their property value to help them pay deposits on newly built homes.
This HTB incentive offered by the Irish Government lasts until the 31st of December, 2022.
In order to claim from the Help to Buy scheme Ireland 2023, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home.
This refers to Income Tax and DIRT. You cannot claim from USC or PRSI.
Don’t worry too much if you feel that you haven’t paid enough tax to qualify, as in actual fact most people in Ireland likely have paid 10% of their property tax within 4 years and can therefore apply to have their tax refunded for their new home under the Help to Buy scheme.
2. How do I know if I qualify for the Help to Buy scheme Ireland 2023?
Even if all your taxes are up to date, there are still some more conditions that you need to take into consideration before applying to the HTB scheme.
In order to qualify for the HTB scheme, you must-
- Be a first time buyer in Ireland and outside of Ireland
- Be moving in with an applicant who is also a first time buyer if more than one person will be purchasing the home, ie) if one applicant is not a first time buyer then you cannot qualify for this scheme
- Be moving into a newly built or self built home
- Be using the property as your principal private residence for 5 years
- Be moving into a home that isn’t a conversion or restoration, however a conversion of a non-domestic home into a domestic home can qualify
- Be moving into a home worth less than €500,000
- Have a solicitor or contractor registered with the Revenue Commission
- Have a mortgage with a loan to value of 70%. For example, if you are purchasing a home worth €200,000, your mortgage must be €175,000.
What rules you out
- Don’t pay for home in cash.
- Don’t be an investor or landlord.
- Don’t use the property for investment purposes.
While it may seem that there are many conditions to the HTB scheme, remember that this incentive is to help first time buyers get on the property ladder.
Therefore if you are a first time buyer and have been tax compliant in the 4 years before moving into your new property, you will most likely be able to qualify for the HTB scheme.
3. How much is available to me from the Help to Buy scheme Ireland 2023?
Under the Help to Buy scheme Ireland 2023, first time buyers can claim,
- 10% of the purchase price of their new build, for example a home worth €200,000 can claim €20,000.
- The amount of Income Tax and DIRT paid in the previous 4 years before moving.
Or for self-builds,
- 10% completion value of their self-build home.
In order to claim from the Help to Buy scheme, your home must be valued at €500,000 or less.
The most you can claim from the HTB scheme is €30,000, meaning that even if your home is valued at more than €300,000, you still can only receive €30,000 max.
| Value of property | Rates | Total claim received |
| €300,000 | 10% | €30,000 |
| €400,000 | 10% | €30,000- cannot receive more than €30,000. |
4.How will I receive my tax refund from the Help to Buy scheme 2023?
So if you qualify for the HTB scheme, your tax refund will be paid to you depending on your property.
If you buy a new build after 1 January 2017 (4 years ago), the refund is paid directly to the builder.
If you self-build the property after 1 January 2017, the refund is paid to a bank account you hold with your loan provider.
This money can be used to help first-time buyers cover the costs of their deposits.
5. How do I get my taxes up to date for the Help to Buy scheme Ireland 2023?
In order to claim from the Help to Buy scheme, you must be fully tax compliant and all your taxes must be up to date.
However if your taxes are not up to date, you must complete a Form 12 if you are a PAYE earner or a Form 11 if you are self-employed.
You must fill out these tax forms in the 4 year period before you move into your new home and pay any outstanding taxes.
6. How can I apply to the Help to Buy scheme Ireland 2023?
If you think you qualify for the help to buy scheme Ireland, then you should go to Revenues MyAccount service, where you will be told how much tax refund is available to you as well as apply.
7. In a Nutshell – Help to Buy Scheme Ireland 2023
In short, the Help to buy scheme 2023 is a great incentive for new first time buyers who are looking to find their way into today’s housing market.
If you are looking to buy a new home as a first time buyer then the Help to Buy scheme is designed to help you.
That is why we at moneysherpa believe you should check to see if you’re eligible for this scheme and apply as soon as you can before it ends on the 31st of December, 2023.
Next Steps – Help to Buy Scheme Ireland 2023
Wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge or you get provisional approval in 5 minutes with our instant approval calculator, so you can get going and view some properties!
If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.
