A new scheme is being introduced to provide a rebate of income tax paid (but not USC or PRSI) over the previous 4 years for first time buyers buying a newly built principal private residence or equivalent self build, on or after 19th July 2016. The rebate will be 5% of the purchase price of the property up to €400,000, i.e. a maximum rebate of €20,000 per property (not per joint buyer) assuming the buyer(s) have paid at least €20,000 income tax over the previous four year period.
The rebate only applies where the mortgage is at least 80% of the home value.
Those who will NOT qualify for the rebate include:
• First time buyers who signed a contract to buy a new home before 19th July 2016;
• First time buyers with an LTV less than 80%;
• First time buyers buying a home valued at more than €600,000;
• Non first time buyers; and a joint purchase between a first time buyer and non first time buyer; both purchasers must be first time buyers
The rebate scheme is scheduled to run to end of 2019.