The Help to Buy is a government tax refund initiative worth up to €30,000 to first-time home-buyers in Ireland until 31st December 2024. The initiative was first introduced in the Finance Act 2017, the refund is made up of income tax and DIRT tax paid over a 4-year period. DIRT is a form of interest tax earned on bank accounts in Ireland.

The scheme caters for newly build homes and one-off self-build houses, the incentive is to help assist with the deposit that is needed for either a new build or a self-build house. 

If you meet the criteria and either bought or constructed a newly built residential property from the 01st January 2017, you could be entitled to claim a refund from the Help to Buy initiative.

In order to be eligible for the Help to Buy Scheme, the following criteria must be met

• First-Time buyer(s) purchasing a new home to live in
• You need to borrow at least 70% of the value of the property
• If you move, leave, or sell within five years from the date the house is habitable, the rebate will have to be repaid.

• If the property is constructed by a developer/ contractor, they must be registered as a qualifying developer/ contractor with Revenue under the Help to Buy Scheme
• The incentive is available only on newly built houses and apartments valued at €500,000 or less.
• Self Builds valued at €500,000 or less.

The HTB scheme was enhanced in the 2020 July job stimulus announcements, which brought the Help to Buy initiative from €20,000 to €30,000. The enhanced scheme will be available for a limited period at €30,000 or 10% of the property value, whichever is the lower amount.

To qualify for the enhanced scheme, you will need to have signed a contract for the purchase of a newly built home between July 23rd & 31st December 2022.  If you are self-building your first drawdown must occur during this period. If you are not in a position to apply for the enhanced scheme during this set period of time you can still apply for the original Help to Buy Limit of €20,000 or 5% of the property value, whichever is the lower amount.

Example:

For example, 

• Property purchase price €400,000.
• All first-time buyers under the central bank guidelines will need a 10% deposit of the purchaser price of the property, e.g., €40,000
• The Help to Buy incentive €30,000
• The remaining balance for the buyer to pay €10,000
• The €30,000 HTB incentive and €10,000 buyer deposit equals to the initial 10% deposit e.g., €40,000

In order for you to register for the HTB scheme, you will need to log into the revenue first. You will need your PPS number and your password to log in, please click here for access.

Once you have logged in, use myAccount to submit a Form 12 for every year you wish to apply for the incentive, you can select up to 4 years.

Form 12 is a tax return to be completed by a person whose main source of income is from a PAYE. Online Form 12s are pre-populated with your pay and tax details. If you need to submit a Form 12 for 2013, this can be downloaded and submitted on paper, once completed, you can scan and upload this to “MyEnquiries” on the revenue.

• Click ‘Add new enquiry’
• Select ‘Help-To-Buy scheme’ from the dropdown options available under ‘My Enquiry relates to’
• Select ‘Form 12 (2013)’ from the dropdown options available under ‘And more specifically’
• Attach the scanned pages of your Form 12
• Submit your enquiry

If you are self-employed, you will need to be tax compliant and fully have your tax clearance certificate. You will need to file your income tax returns and pay any tax you may owe for all years that you have been self-employed. Use Revenue Online Service (ROS) to submit Form 11.

Once the above steps are completed you are able to apply for the Help to Buy 
This process is easy to follow, it is a three-stage process.

• The Application Stage
• The Claim Stage
• The Verification Stage

     1. The Application Stage

When you are applying for the help to buy, you can do this as an individual, or as a group, if you are buying with another person. You will need to submit a declaration and select the four-tax years you want to use for the rebate. Once you submit and your application is approved, you will be provided with an application code. The application code will usually look like this (AOO233333). Your application can present as “under review” or you will be provided with a summary of the maximum amount you can claim. 

Once the application is processed you will receive a six-digit access code. The access code will usually look like this (513223). You will receive this through “MyEnquiries”. You should pass your application code and access code to your solicitor and sales agent.

    2. The Claim Stage

You can only move onto the claim stage, once you have received your loan offer and signed contracts. In order to proceed to the claim stage, you will need to login to the revenue and select proceed to claim stage and complete the following. 

• Upload the first page and the signing page of the sales contract.
• Upload your loan offer. 

Once you have uploaded the correct information you will then be asked the following questions. 

• The purchase price of the house, which is outlined in your contract.
• Deposit payable, this is the contract deposit amount payable to the developer that is outlined in your contract.
• The booking deposit amount is the booking deposit you paid directly to the sales agent when securing your home
• The contract deposit you paid to the solicitor when signing your contract. 

Once the claim is processed you will receive your claim code. The claim code will usually look like this (COO233333). You will receive this through “MyEnquiries”. If any of the information you have provided is incorrect you must cancel and re-submit your claim with the correct information before it can be verified.

      3. The Verification Stage

You will need to share your claim code and access code with your solicitor and with the sales agent.  Once your application has been submitted correctly, the developer will be able to verify your claim. Once verified you will receive a notification on your revenue account. It can take between 5 – 7 working days for the Help to Buy funds to be transferred from the revenue to the developer. 

The developer will hold onto the