REVENUE CRACKDOWN: HUNDREDS FORCED TO REPAY HELP TO BUY GRANTS OVER UNDECLARED PROPERTY ABROAD

DUBLIN — The Irish Revenue Commissioners have successfully clawed back nearly €2 million from hundreds of homebuyers who wrongfully claimed state support under the Help to Buy (HTB) scheme.

A sweeping investigation by the tax body revealed that numerous applicants had failed to declare that they already owned residential property overseas, directly violating the strict statutory rules governing the financial incentive.

'Taking a Chance'

The scheme, which provides first-time buyers with a tax rebate of up to €30,000 to purchase or self-build a new home, is legally restricted to individuals who have never previously owned a property anywhere in the world.

However, industry experts report that some applicants have intentionally gambled on the system. Michael Dowling of Irish Mortgage Brokers stated that he has frequently encountered buyers attempting to bypass the regulations under the false assumption that authorities would remain unaware of foreign assets.

"They are taking a chance by saying they did not own a property previously when they did," Mr. Dowling told the Irish Independent. "They are making a false claim and assuming they will never be caught."

Multiple Rule Violations Uncovered

The €2 million recovery operation targetted two primary types of non-compliance:

1. Foreign Property Ownership: Applicants who owned or co-owned a home outside Ireland, making them entirely ineligible as first-time buyers.
2. Residency Breaches: Buyers who sold their newly built home or moved out within five years of receiving the grant, breaking the minimum occupancy requirement.

Official figures show that Revenue recorded 100 specific clawback cases between 2020 and 2026, with an additional 30 cases currently remaining under active examination.

The enforcement drive follows high-profile individual rulings, including a recent case where a homeowner was ordered to return a €38,000 grant after Revenue officials discovered they held a property in the United Kingdom.

Strict Framework Remained

Since its inception in 2017, the HTB scheme has approved 67,107 claims, distributing roughly €1.53 billion in state aid to help buyers bridge deposit gaps. Revenue notes that 41% of all successful applicants claim the maximum €30,000 cap, with the highest concentration of approvals located in Dublin, Kildare, and Meath.

Legal and financial experts warn that Revenue's data-sharing capabilities make it increasingly difficult to hide international assets. Homeowners who fall foul of the clawback criteria face immediate demands for full repayment, alongside potential statutory interest charges and penalties.

Tax treaties between India and Ireland

Double Taxation Avoidance Agreement (DTAA) between Ireland and India This is in place. This allows the tax departments of both countries to exchange financial and asset information with each other. With the strengthening of these international data sharing systems, it has now become impossible to hide bank accounts or assets abroad.

Under the Double Taxation Avoidance Agreement (DTAA) between India and Ireland, a person does not have to pay tax in both countries on the same income.

The main information is as follows:

• Taxes included: This includes income tax in India, income tax in Ireland, USC, and corporation tax.
• Low tax rates: Withholding tax on dividends, interest, and royalties is generally capped at 10%.
• Tax Credit: Tax paid in one country can be credited (deducted) in the other country.
• To get the benefit: To avail this benefit, a Tax Residency Certificate (TRC) needs to be submitted.

Additionally, those who wish to sell property in India and remit the money to Ireland will be liable to tax in Ireland. However, if tax has already been paid in India, they will be eligible for a Foreign Tax Credit. There is a law to avoid claiming and paying tax twice on the same money.

Strict inspections and high fines

If a revenue audit finds that the money was received by submitting a false affidavit, the entire amount received will have to be repaid immediately. In addition, financial experts warn that they will face heavy fines and legal action. With more than €1.5 billion allocated under the Help to Buy scheme since its inception, the Revenue Department has stepped up inspections to prevent abuse.

If you are a resident of Ireland, you may be required to disclose information about your assets in India to Irish Revenue. 

If you are a tax resident in Ireland, you must report your overseas assets to the Irish Revenue Commissioners. It is mandatory to disclose this because Ireland follows a 'worldwide tax system'.

However, this should be clarified based on your tax residency status and how you currently use that property.

1. How do you know your tax status?

Whether you must disclose foreign assets depends primarily on your following status:

• Resident and Domiciled: If you are a permanent resident of Ireland, you must pay tax here on your worldwide income and profits. So you must report details of your foreign property, the rent from it, and the profit you get on its sale to the Revenue Department.
• Resident but Non-Domiciled: If you live in Ireland but your permanent home country is somewhere else (for example, Indian citizens), you only have to pay tax here when you bring (remit) income from foreign property into Ireland. If you bring that money into Ireland, you must declare it.
• Non-Resident: If you are not tax resident in Ireland, you do not have to declare your overseas assets to Irish Revenue.

2. Circumstances in which disclosure of foreign assets is mandatory

If you are a tax resident of Ireland, foreign asset disclosure is mandatory in the following circumstances:

• When applying for government schemes: Help to Buy (HTB) Or when applying for government benefits for first-time home buyers, such as the First Home Scheme, you must officially certify that you have no assets abroad. If you hide this, you will have to repay the benefit and face legal action.
• When receiving rental income: If the house abroad is rented out, the total income from it is in Form 11. Or Form 12 You must file a tax return every year. Even if you pay taxes in that country, you must show this information here.
• When selling property: Capital Gains Tax (CGT) when selling or gifting overseas property It must be reported to the Revenue for calculation. For this, Form CG1 must be submitted. Need to file.
• When inherited: If you inherit or receive a house abroad as a gift, and its value exceeds a certain threshold, you may be subject to Capital Acquisitions Tax (CAT). It must be disclosed by law.

3. Double Taxation

Ireland has signed 'Double Taxation Treaties' with many countries. So if you have already paid tax in that country on income from property abroad, you may be able to claim a Foreign Tax Credit when filing your tax return in Ireland. You can claim it. This will help you avoid paying tax twice on the same money.

Double Taxation Avoidance Agreement (DAA) between Ireland and India Exists.

If you are an Indian citizen and working or living in Ireland, you need to keep the following in mind:

1. Your Tax Status

As an Indian citizen, your status in Ireland is usually 'Resident but Non-Domiciled'. Will be.

• This means that if you do not bring (remit) income from your property or bank accounts in India (for example rent or interest) to Ireland It is not taxed in Ireland.
• But if you transfer that amount to a bank account in Ireland or spend it here, it must be declared here and taxed.

2. Schemes for first-time home buyers (Help to Buy - HTB)

Help to Buy (HTB) for first-time home buyers in Ireland Or if you are applying for funding through the First Home Scheme:

• If you own a house, flat or inherited land in your name (or jointly with your partner) in India, you are not considered a 'first-time buyer'.
• In such a situation, you must disclose that you have assets in India. If you conceal this and receive the benefit, you will face a large fine and legal action.

3. When selling property in India (Capital Gains Tax)

If you sell a property in India and want to bring the proceeds to Ireland:

• Those capital gains need to be disclosed in Ireland.
• If you have already paid tax in India, you may be eligible for Foreign Tax Credit as per the agreement between the two countries. You can claim and get tax relief in Ireland.

4. Inherited property (Inheritance)

If you inherit or receive a property from India as a gift, it will only be subject to Capital Acquisitions Tax (CAT) if you have been tax resident in Ireland for more than 5 years. It's within the limit.

The most important things you need to know in both of these situations are as follows:

1. If you are applying for the Help to Buy (HTB) scheme:

If you currently own or previously own a house, flat or any other completed residential property in India (whether you purchased it or inherited it), you are not considered a 'first-time buyer' under Irish law. .

• Do not apply: You are not eligible to apply for HTB benefit if you have property in your name in India.
• Tests: The Irish Revenue Department is now conducting a rigorous review of international bank information and assets (as seen in the media reports). If you hide your information and take advantage of it, you will have to pay back the money later with large fines and interest.

(Note: If you have just 'agricultural land' or 'empty plot' in your name in India, you may be considered a first-time bearer under certain circumstances. However, if you have a house there, you will not be eligible).

2. If you are planning to sell property in India:

If you want to sell property in India and remit the money to Ireland:

• Tax liability: Capital gains received in India must be declared in Ireland.
• Double Taxation Avoidance (DTAA): If you have already paid tax in India on this money, keep the tax receipts/challans. Foreign Tax Credit when filing taxes in Ireland If you claim it, you won't have to pay the full tax here again for the same money.