DIRT Refunds for First Time Buyers – Budget 2015

In Budget 2015 a relief from DIRT for first time buyers was announced.
(Deposit Interest Retention Tax)

Update – this DIRT refund scheme was replaced in 2018 by the Help to Buy Scheme

The DIRT refund applied to savings used by first time house buyers towards the deposit on a house. This applied to houses bought between 14th Oct 2014 and 31st December 2017.

The refund of DIRT was  for up to 4 years  prior to the purchase date – and applied to the amount of DIRT charged on deposits up to the value of 20% of the purchase price.

So – if a house cost 200,000 Euro – a first time buyer was able to claim a refund of DIRT paid on the first €40,000 that they had on deposit up to the date of purchase. The refund was for a maximum of 4 years of DIRT.

IE – a simplified example :  If  they had  €40,000 it in an account paying 3% interest – for the past 4 years if we say the average DIRT on that would have been 33% . That would mean DIRT of about €1600 over 4 years. Under this refund scheme – that €1600 would be refunded by Revenue.

The  claim for a refund of DIRT was to be made online on the Local Property Tax section of the Revenue Commissioners site.  Proof will be required  of DIRT payments – such as bank statements from the Bank, Building Society or Credit Union.


Notes on DIRT Refunds

To get a refund  – the deposits  must be held in the name of a first – time purchaser, individually or jointly with another first – time purchaser.

For clarity – a first time buyer is  “a person, being an individual who, at the time of a relevant purchase, has not, either individually or jointly with any other person or persons, previously purchased or previously built directly or indirectly on his or her own behalf any other dwellinghouse or apartment