Who is a first time buyer?
A first time buyer is a person, (or, where there is more than one buyer, each of such persons):
- who has not on any previous occasion, either individually or jointly, purchased or built on his/her own behalf a house (in Ireland or abroad) and
- where the property purchased is occupied by the purchaser, or a person on his behalf, as his/her only or principal place of residence and
- where no rent, other than rent obtained under rent a room arrangements, is derived from the property for a period of two years from the date of the purchase. This relief is subject to clawback provisions.
Prior to 5 December 2007, the period where no rent could be obtained was five years. Under the Finance Act 2008, this period has been reduced from 5 years to 2 years for deeds executed on or after the 5 December 2007.
For instruments executed before 5 December 2007, to the extent that a dwelling house or apartment is rented out on or after 5 December 2007, it will not involve a clawback of the relief where this occurs in the third, fourth or fifth year of ownership.