*This article was amended on the 28th of February 2020 to reflect the changes in the rebate timeframe
The Minister for Finance has announced a new tax relief incentive whereby first-time buyers will be entitled to a 5% rebate on the purchase price of a new house up to the value of €400,000 on their income tax for the previous 4 years.
Pro-rata rates will apply to houses where the purchase price is below €400,000 while a full rebate calculated on a purchase price of €400,000 would apply to houses within the €400,000 – €600,000 price range. There will be no rebate for houses where the purchase price is in excess of €600,000.
It is important to note that the house must be a new build (including self-built homes) and the purchasers must take out a mortgage of at least 80% of the purchase price. This rebate will be backdated where contracts were signed after the 19th July 2016 and also where the first mortgage drawdown in the case of self-builds occurred on the 19th July 2016 or later. This rebate will remain in effect until the end of 2021.
Second-hand homes are not included in the Help to Buy Scheme.
For more information on the above please contact Michael O’Grady in our office on 051 877029 or email email@example.com