This scheme gives financial help to first time buyers by way of giving them back a large amount of the income tax they paid over the four previous years. As is only to be expected, there are several conditions to be met before payment is made. Some of the main conditions and features of the scheme are as follows:
1. The scheme only applies to first time buyers of new build homes and apartments to include self-build.
2. The newbuild property must not exceed €500,000 in value.
3. The maximum amount you can successfully claim is €30,000 if you and your partner have actually paid that amount in income tax and DIRT over the last four years. If you check your records and find that you only paid, say, €22,000 in tax over that period, then you can still claim tax refund of €22,000.
4. You will not be a first-time buyer if you own a property abroad or your first purchase is a Buy to Let house or apartment.
5. You must take out a mortgage over the house and this loan has to be at least 70% of the value of the property. You do not qualify for anything if you buy for cash and do not need a loan!
6. You can still obtain the HTB even if a parent guarantees the loan for you.
7. Under certain conditions, you can still get the HTB even if you’re also an applicant under the shared equity scheme like the First Homes Scheme.
8. You must be tax compliant for the preceding four years as HTB is essentially a tax refund to the taxpayer.
9. The house or apartment must be valued at least at € 500,000 and the builder must be approved by Revenue.
10. After you get the keys to your new build, you must live in the property for a period of at least five years as otherwise you might suffer an unwelcome tax clawback!
11. The maximum amount of refund under HTB is €30,000 and this was increased in 2020 and applies until 2025. You can claim up to €30,000- or four-years previous tax payments whichever is the lesser.
12. You apply for the refund online through the usual PAYE or self-employed revenue websites. These are for PAYE taxpayers My Account and for self-employed taxpayers the revenues online service (ROS).
13. Once your application is approved by Revenue, you can claim the HTB refund using ROS or My Account.
14. After buying a new build the refund is paid directly to the builder developer. If you self-build, the refund is paid to a joint bank account you hold with your lending institution.
15. For more information, see www.revenue.ie/en/property/documents/HTB – summary – applicants. PDF And check out the Revenue website at www.revenue.ie
If a person requires legal assistance on a property sale/purchase matter from property solicitors, we can be contacted on (052) 612 1999 or (01) 546 1121.
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