Ireland to offer 20,000 euro tax rebate for first-time house buyers

Ireland's Minister for Finance Michael Noonan displays a copy of the budget on the steps of Government Buildings in Dublin, Ireland October 11, 2016. REUTERS/Clodagh Kilcoyne

DUBLIN (Reuters) - Ireland is to give first-time homebuyers a tax rebate of up to 20,000 euros in a measure designed to stimulate house building and alleviate the country’s housing crisis, Finance Minister Michael Noonan said on Tuesday.

The Help-to-Buy scheme, targeted at young people struggling with high rents and mortgage lending limits introduced by the central bank, will provide a 5 percent income tax rebate over four years for new homes worth up to 400,000 euros, he said.

The grant will count towards the minimum deposit required to be eligible for a mortgage under Central Bank rules, which were designed to prevent a repeat of a housing bubble that crippled the economy at the end of the last decade.

Reporting by Conor Humphries