Budget 2025

Budget 2025

While not the panacea to solve the housing crisis, Budget 2025 includes some good news for those who rent their homes and those who intend to buy.

For potential buyers, the Help to Buy Scheme (HTB) has been extended to the end of 2029 (it was due to end on 31 December 2025). The HTB scheme helps first-time buyers purchase a newly built house or apartment by offering tax relief of up to €30,000 on the purchase of a new home with a value of €500,000 or less. The HTB scheme is available for new homes, which haven’t been lived in before, and for self-builds.

In a nutshell, the HTB offers a refund of the Income Tax and Deposit Interest Retention (DIRT) Tax you’ve paid in Ireland for the four years before you apply for the scheme. You must be an Irish taxpayer to be eligible for the scheme.

To qualify for the HTB, you must be a first-time buyer who plans to live in the property as your main home. If two people are purchasing a property, they must both be first time buyers. One of the qualification requirements is that you must take out a mortgage that is at least 70% of the purchase value of the property (that’s normally the price you pay for the property). The maximum payment is €30,000, regardless of how many people are involved in buying the property. You’re allowed to have a guarantor on the loan.

The HTB can work in conjunction with shared equity schemes, including the First Home Scheme or the Local Authority Affordable Purchase Scheme, but the calculations can be complex. Advice is available from Revenue and in addition your local Sherry FitzGerald will also be able to help you navigate the scheme.

Application for the Help to Buy Scheme is through Revenue, with slightly different pathways for PAYE and self-assessed taxpayers. Additional documentation will be required and must be verified by the contractor (or a solicitor if you are building your home). The refund will be paid directly to the contractor, who must also be approved by Revenue.

Other good news from Budget 2025 includes an increase in Rent Tax Credit. The amount of the credit is 20% of your rent payments in the year to a maximum of €1,000 per individual and €2,000 per jointly assessed couple. The previous limits were €750 and €1,500. The increase applies retrospectively for 2024 and will also be available to claim for 2025.

The rent payments must be for a home in Ireland and your tenancy must be registered with the Residential Tenancy Board (RTB). There are a few exemptions to this, including when you are sharing a home with the owner. Rent Tax Credit is not available to people renting from their parents, their children, or from a local authority or housing association.

Budget 2025 also introduced two stamp duty rate increases. The higher rate of stamp duty, which applies to bulk purchases of ten or more homes (excluding apartments) within a twelve-month period, has increased from 10% to 15%. Moreover, a new tiered 6% stamp duty rate will apply to residential properties valued at more than €1.5 million.

If you are buying or selling property and want to find out more on the implications for you , check out Your Guide to Budget 2025 on this link.