Help to Buy Scheme

First Time Buyers Help to Buy (HTB) Scheme

Help to Buy Scheme for First Time Buyers

Your Complete Guide to the HTB Scheme in Donegal

What is the Help to Buy Scheme?

The Help to Buy (HTB) scheme is a government incentive designed to help first-time buyers with the deposit needed to purchase or self-build a new home in Ireland. If you meet the eligibility criteria, you can receive a tax rebate to put towards your deposit, making homeownership more accessible.

Key Highlights at a Glance

• Tax rebate of up to €30,000 or 10% of purchase price (whichever is lower)
• Refund based on Income Tax and DIRT paid over the previous 4 tax years
• Available for new builds only – purchases or self-builds
• Property value must be €500,000 or less
• Must borrow at least 70% (maximum 30% deposit)
• Available until 31 December 2029
• Must live in the property as your main home for 5 years
• Can be used alongside the First Home Scheme

Who is Eligible

You Must Be:

• A first-time buyer (you have never bought or built a property before, either alone or with someone else)
• Purchasing or self-building a new residential property to live in as your main home
• Taking out a mortgage of at least 70% of the property value with a qualifying lender
• Fully tax compliant for the 4 years before your application

The Property Must Be:

• A new build (never previously occupied or suitable for residential use)
• Valued at €500,000 or less
• Purchased from a Revenue-registered contractor (for purchases)
• Located in Ireland
• Your principal private residence for at least 5 years after purchase/completion

Tax Compliance Requirements

• To qualify for the Help to Buy scheme, you must meet specific tax requirements:
• Be fully tax compliant for the 4 years immediately before your claim
• Complete online Form 12 (if PAYE) or Form 11 (if self-assessed) for each of those 4 years
• Pay any outstanding taxes that are due
• Be registered for Revenue’s myAccount service (if PAYE taxpayer)
• Be registered for Revenue Online Service (ROS) if you are self-assessed
• Have tax clearance if self-assessed and taking out a mortgage

How Much Can You Receive?

The Help to Buy refund is calculated as the LOWER of:

• 10% of the purchase price or approved build cost
• The total Income Tax and DIRT you paid in the 4 years before your application
• €30,000 (the maximum cap)

Real-World Examples

Example 1: Purchasing a New Home

Sarah is buying a new apartment in Letterkenny for €280,000.
• 10% of purchase price = €28,000
• Income Tax + DIRT paid over 4 years = €32,000
• HTB amount = €28,000 (the lower amount)

Example 2: Self-Build

John is building a house with an approved build cost of €350,000.
• 10% of build cost = €35,000
• Income Tax + DIRT paid over 4 years = €25,000
• Maximum cap = €30,000
• HTB amount = €25,000 (the lowest of the three amounts)

Using Help to Buy with the First Home Scheme

Good news! You CAN use both the Help to Buy and First Home Scheme together. However, there are important interactions to understand:

• If you use HTB, the maximum equity from First Home Scheme is reduced from 30% to 20%
• First Home Scheme equity is NOT counted when calculating your 70% Loan-to-Value requirement for HTB
• This means you can use First Home Scheme equity to help reach the 70% borrowing threshold
• Both schemes can significantly boost your deposit and purchasing power

How to Apply – Step by Step

Step 1: Check Your Eligibility

Review the eligibility criteria and ensure you meet all requirements. Contact us for a free assessment.

Step 2: Complete Your Tax Returns

Ensure all Income Tax Returns are filed for the previous 4 years. Go to Revenue myAccount or ROS and check that you can view your returns for each year under “Review your tax 2021-2024”.

Step 3: Apply Through Revenue

Log into Revenue myAccount (PAYE) or ROS (self-assessed) and complete the HTB application form. You’ll need details of your purchase including property value and contractor information.

Step 4: Receive Your Confirmation

Revenue will provide a confirmation number and access number. You can print a statement showing the amount you’re eligible for to share with your lender and solicitor.

Step 5: Complete Your Purchase

Once contracts are signed:

• For purchases: The grant is paid directly to the contractor
• For self-builds: The grant is paid to you after your first mortgage drawdown

Important: Clawback Rules

You must repay some or all of your Help to Buy payment if you don’t meet the scheme conditions. This is called “clawback”. You have to pay the HTB payment back to Revenue if you:

• Do not live in the home for at least 5 years
• Do not complete the purchase of the home
• Do not finish building the home
• Were not entitled to the payment in the first place

Can Revenue request repayment of the Help to Buy payment?

If you don’t live in the home for the full 5 years, the amount you must repay depends on how long you lived there:

Note: There are exceptions to clawback rules, such as if you need to relocate temporarily for work, or if you purchased jointly and the other buyer remains in the property for 5 years.

Important Dates & Deadlines

The Help to Buy scheme is available for properties purchased or self-built between:
1 January 2017 and 31 December 2029
Note: This scheme is reviewed annually in the government budget and may be amended, extended, or withdrawn at any stage. It’s important to apply as soon as you meet the eligibility criteria.

Any Questions
Give us a call. We are happy to answer any questons you may have. We can also assess your ability to get a mortgage and how much you can borrow.