Help-to-Buy Scheme Explained: A Complete Guide
Ireland’s enhanced Help-to-Buy scheme supports first-time buyers by providing a tax refund of up to €30,000 or 10% of the purchase price on new or self-built homes. Originally set to expire at the end of 2025, the scheme has now been extended to 31 December 2029. This means qualifying buyers have more time to benefit from state support as property prices and construction costs remain elevated.
What is the Help-to-Buy Scheme?
Purpose: To encourage first-time buyers to purchase or self-build a new dwelling.
Benefit: A refund on Income Tax and DIRT you have paid over the previous four tax years, up to €30,000.
Eligible Properties: New homes or self-builds with a purchase price or cost not exceeding €500,000.
Refund Calculation:
Relief = 10% × Purchase Price
Cap = €30,000
Claim Window: Where applicants sign a contract for the purchase of a qualifying property, or make the first draw down of the mortgage in the case of a self-build property, during the period from 23 July 2020 to 31 December 2029.
Who qualifies for Help-to-Buy?
To be eligible, you must meet all of the following:
- First-time buyer status: You and your spouse/civil partner must never have purchased or built a home before, either in Ireland or abroad.
- Taxpayer in Ireland: You must have paid Income Tax and DIRT in Ireland in the four tax years preceding the claim year. Minimum tax paid must equal or exceed the relief sought.
- New home or self-build: The property must be a new dwelling (not previously occupied) or a self-build project. Maximum value of €500,000 applies.
- Contract dates: On or after 23 July 2020 and on or before 31 December 2029.
How much relief can I claim?
| Purchase price | Maximum 10% relief | Cap applied |
| €200,000 | €20,000 | No |
| €300,000 | €30,000 | No |
| €400,000 | €40,000 | €30,000 cap |
| €500,000 | €50,000 | €30,000 cap |
Tax paid requirement: Your combined Income Tax and DIRT paid over the previous four years must be at least equal to the relief amount.
What If Your Tax Paid Is Less Than the Maximum Relief? If you have not paid enough tax to cover the full amount of relief, you cannot claim more than the tax you’ve actually paid.
So for example:
Purchase Price: €300,000
Potential Relief: 10% = €30,000
Tax Paid in Last 4 Years: €20,000
Result: You are entitled to €20,000 only, because you cannot claim more than the tax you’ve paid. There is no top-up by the government, and you cannot carry forward unused relief.
Does this make you ineligible? No, it does NOT disqualify you. You still qualify for the scheme but your relief is capped by your actual tax contribution over the 4 years.
How To Apply
- Gather documents: Proof of purchase/self-build contract (date, price); PPS number and Personal Public Service records; Tax payment summaries (four preceding years).
- Complete Revenue Form: Use Form HB1 available on Revenue.ie; Declare contract details, property address and tax payment history.
- Submit to Revenue: Online via MyEnquiries or by post to the Help-to-Buy Unit, Revenue Commissioners.
- Receive Refund: Paid directly into your nominated Irish bank account in euro or sterling.
When does the scheme end?
– Original end-date: 31 December 2025
– Updated end-date: 31 December 2029
– Contracts signed on or before this new deadline qualify for relief – even if completion occurs later.
Additional considerations
– Self-build timelines: You must complete construction and claim within three years of contract signing.
– Interaction with other schemes: Help-to-Buy is separate from other available first time buyer schemes like the First Home Scheme. Always consult a mortgage advisor for more information.
Why use Help-to-Buy?
– Reduced upfront cost: A lump-sum refund can cover deposit shortfalls or allow you to use some of your own cash towards furnishing the home.
– Supports new builds: Encourages development in the construction sector, aiding the housing supply.
Sources
Revenue.ie: Help-to-Buy Scheme details
Revenue.ie: Form HB1 guidance
Revenue.ie: Tax Relief rules for first-time buyers
Internal: Extensions confirmed to December 2029
Disclaimer
This article does not constitute tax or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Any expressions of opinions are subject to change without notice. Although endeavours have been made to provide accurate and timely information of the various source material, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future
