Budget Summary 2017- Key Points for First Time Buyers and Other Property Purchases

Help to Buy Income tax refund scheme for first time buyers

• A rebate of any income tax paid (but not USC or PRSI) over the previous 4 years for first time buyers buying a new (but not second hand) principal private residence or equivalent self build, on or after 19th July 2016 of 5% of the purchase price/value of the new home up to €600,000
• The maximum rebate is €20,000 per property (not per joint owner); no rebate applies if the new home is valued at more than €600,000. The rebate is also limited to the amount of income tax actually paid over the previous four years
• The rebate only applies where the mortgage is at least 80% of the home value
• A joint purchase between a first time buyer and non first time buyer will not qualify for the tax rebate
• Incentive scheduled to run to end of 2019

Other property incentives

• Buy to let mortgage interest offset against rental income from rented residential property to be increased from its current 75% to 80% in 2017, for both new and existing buy to let mortgages. It is planned to increase the % by 5% in each of the following years to reach 100% by 2021
• Mortgage Interest Tax relief for those who took out mortgages between 2004 and 2008 was due to be phased out by the end of 2017. The Minister has confirmed that he will bring forward an extension of mortgage interest tax relief on such mortgages in Budget 2018
• The limit on the Rent a Room income tax relief is being increased from €12,000 pa to €14,000 pa from 2017