First-Time Buyer Tax Essentials: Part 3 - Tax Reliefs & Schemes You Can Claim

Welcome to Part 3 of our First‑Time Buyer Tax Essentials series. So far, we’ve covered the basics of purchasing your first home and the associated taxes. Now, we're diving into what matters most—how much financial support is available to help you afford your first property.

The Irish government provides multiple schemes, tax reliefs, and refunds specifically for first-time buyers. When properly utilised, these can save you tens of thousands of euros.

1. Help to Buy (HTB) Scheme

What is it?

First-time buyers can claim a refund of income tax and Deposit Interest Retention Tax (DIRT) paid in the four tax years prior to their application, capped at €30,000 or 10% of the purchase price, whichever is lower.

Who qualifies?

• Must be a first-time buyer (never owned property anywhere).
• Purchase or self-build a new home, to be used as your main residence.
• Purchase price cannot exceed €500,000.
• A 70% LTV mortgage minimum is required.

How to apply?

• Via Revenue's MyAccount (PAYE) or ROS (self-assessed).
• Developer must be HTB‑approved; solicitor verification required for self-build.

2. First Home Scheme (FHS)

What is it?

A shared equity initiative allowing the Government (with banks) to take a 2.5–30% stake in your new home to reduce your mortgage needs.

Who qualifies?

• First-time buyers, self-builders, or tenants purchasing their rented dwelling.
• Scheme extended to new builds, self‑builds, and tenant purchase since 2023.
• Maximum 30% Government equity, or 20% if using HTB.

Benefits & considerations:

• Reduces your required deposit and mortgage amount.
• No interest charged for the first five years.
• Shared ownership means you owe the Government a proportional share upon sale or remortgage.

3. Rent Tax Credit

What is it?

A credit for those who rented before purchasing. For tax years 2022–2025, it offers:

• €500 (single) / €1,000 (couple) in 2022–23.
• Increased to €1,000 (single) / €2,000 (couple) for 2024–25.

Eligibility:

• Pay rent for your principal private residence, a work-related property, or a child's accommodation.
• Registered tenancy, income tax liability must exist.

4. Local Authority Affordable Purchase Scheme

Local authorities offer homes at a discounted price, retaining an equity portion equivalent to the discount.

• Targeted at those on lower incomes in designated developments.
• Discount is recouped only if you sell, remortgage, or buy out their interest.

5. Income Tax Refunds

PAYE taxpayers often overpay tax during the year, especially when circumstances change. Common triggers include:

• Starting/changing jobs mid‑year.
• Emergency tax or unclaimed credits.
• Unpaid leave, illness, or part‑time status.
• Becoming tax resident, moving to/from Ireland.

Pro Tip: When filing, don’t forget to:

• Claim full‑year tax credits if applicable.
• Include deductible expenses (e.g., health, education, remote work).
• Declare HTB or mortgage relief.
• Rectify emergency tax periods or missed credits.
• Consider electing tax residency if it improves your tax position.

These steps could unlock hundreds or even thousands of euros in refunds.

Final Takeaway

Buying your first home is a significant leap—and Ireland’s tax system offers robust supports to help you get there. From up to €30,000 back via HTB, through shared equity schemes, rent and income tax credits, to refundable overpayments—these tools can meaningfully reduce your financial burden.

To actually benefit, you need to understand each scheme’s rules, file accurately, and time your claims well. Even small oversights can cost you thousands.

Irish Tax Hub is here to guide you—helping you navigate these schemes, file your return, and make sure you get every euro you're entitled to. Contact us today to get started.

Check out part two of the series here in case you missed it.