Help to Buy: how much can you actually get back?

What is the Help to Buy scheme?

The Help to Buy (HTB) scheme is a government initiative that gives first-time buyers a refund of income tax and DIRT (Deposit Interest Retention Tax) paid over the previous four years. The refund goes directly toward your deposit on a new-build home. It is administered by Revenue and has been extended through to the end of 2029.

The maximum refund is €30,000, or 10% of the purchase price of the home, whichever is lower. So on a €250,000 new-build, the maximum you can receive is €25,000 (10%). On a €350,000 property, the maximum is €30,000 regardless of what 10% would be.

How is the amount calculated?

Your refund is based on the total income tax and DIRT you paid over the four tax years before your application. Revenue looks back four full years and adds up everything you paid. The refund is capped at the lower of 10% of the property price or €30,000.

If you paid €8,000 in tax over the four years, that is all you can claim, even if 10% of your property would be €25,000. The scheme only refunds tax you actually paid.

Who qualifies?

You must be a first-time buyer who has never owned or had an interest in a residential property in Ireland or abroad. Both buyers in a joint application must be first-time buyers.

The property must be a new-build or a self-build. Second-hand homes do not qualify. This is probably the most common mistake people make. If an estate agent mentions Help to Buy in connection with a second-hand property, that is incorrect.

The property must cost €500,000 or less. You must take out a mortgage of at least 70% of the purchase price (loan-to-value of 70% or more). You must live in the property as your principal residence for at least five years.

All tax returns must be filed and all taxes paid for the four years preceding your application. If you have any outstanding tax liabilities your application will be refused. This catches a lot of self-employed applicants.

DIRT counts too

DIRT is the tax deducted from interest on savings accounts, currently at 33%. If you have been saving diligently in a deposit account earning interest, the DIRT deducted from that interest counts toward your total refund entitlement. Most buyers forget this. If you have had significant savings for four years the DIRT amount can add meaningfully to your claim.

Can you stack it with other schemes?

Yes. Help to Buy can be used alongside the First Home Scheme, which is a separate government equity share scheme. The First Home Scheme bridges the gap between your deposit, your mortgage and the purchase price by taking an equity stake of up to 30% in the property. Using both schemes together means a buyer could access significantly more support than either scheme alone provides. Not all lenders participate in both schemes, so you need to check before committing.

How to apply

Go to Revenue myAccount and use the Help to Buy eligibility checker under My Enquiries. This shows your estimated refund based on your tax history before you have even found a property. It is worth doing this early, before you start viewings, so you know exactly what you can claim.

Once you have selected a property and signed a contract, you submit the full application through Revenue. Your developer must be registered with Revenue for HTB, and most qualifying developers are. Revenue typically processes claims within 4 to 5 working days.

What most buyers get wrong

Assuming they get the maximum €30,000 when they may have paid less than that in tax over four years. Not checking tax compliance before applying, when any outstanding returns or payments will block the claim. Applying for second-hand homes. Not counting DIRT from savings accounts. Not checking that their chosen developer is registered with Revenue for HTB.