Tax Rebate for First Time Buyers.
12 October, 2016
The scheme will provide a rebate of income tax, paid over the four years prior to buying, to a maximum of 5 per cent of the purchase price of a new home valued at up to €400,000.
Buyers of homes costing between €400,000 and €600,000 will also be entitled to the €20,000, though the percentage of the purchase price this equates to will be lower.
No rebate will be available for homes costing more than €600,000.
The rebate will apply to people buying homes newly built by developers and people building one-off houses, and no relief will be given to those buying second-hand houses.
The scheme is also only available to people who are taking out a mortgage of least 80 per cent of the purchase price, or in the case of a self-build, 80 per cent of the valuation approved by the mortgage provider.
It is a rebate of income tax paid in Ireland – so if a returning emigrant paid income tax here within the last four tax years, they may be eligible for a contribution towards their deposit.
An individual also does not have to have been working consistently – any and all income tax paid in the last four tax years will be taken into account.
The well-flagged incentive will be available to buyers who signed contracts to buy on or after July 19th. In the case of a self-build, applicants who drew down the first tranche of their mortgage on or after July 19th will also be eligible. This scheme will run until the end of 2019 and is expected to cost €50 million.