Buying a new build in Ireland: deposits, VAT, Help to Buy and the snag list

A new build is a home nobody has lived in yet. You buy it from a builder or developer, often before it is finished. The steps are a little different from buying a second-hand home. This guide walks through the money, the paperwork and the last checks before you get the keys.

How a new build is sold

Most new homes are sold in phases from a show house. You see the show house, pick a plot, and pay a booking deposit to the agent (an agent needs a PSRA licence; see the estate agent page). Your home may be a plan on paper at that point. The builder then finishes it over months, sometimes over a year.

Three deposits come up, and they confuse most people. Here is what each one is.

The booking deposit holds the plot. It goes to the agent, not the builder, and you get it back if you pull out before contracts. The booking deposit guide covers it in detail.

A worked example at €400,000

Say you are a first-time buyer and the house costs €400,000. The Central Bank rules let a first-time buyer borrow up to 90% of the price. So the mortgage can be up to €360,000 and you need €40,000 yourself.

Help to Buy is a refund of income tax you paid over the last four years. It is up to 10% of the price, capped at €30,000. A rise to €35,000 was announced in Budget 2027 for contracts from 7 October 2026; it is not law until the Finance Act 2026 passes (see the changes page). On a €400,000 home, 10% is €40,000, so the cap applies. At the €30,000 cap, you need €10,000 of your own savings for the deposit. The Help to Buy calculator runs your own numbers.

You still need money for the costs on top: the solicitor, stamp duty, the snag list and insurance. The cost of buying calculator adds them up.

VAT is inside the price

The price of a new home already includes VAT. On a new house the VAT is 13.5%. On a new apartment it is 9% from 8 October 2025 to 31 December 2030. You do not add VAT on top; the builder has already done that.

VAT matters for one thing: stamp duty. Stamp duty is charged on the price without VAT. For a €400,000 house, the price without VAT is €400,000 divided by 1.135, which is €352,423. Stamp duty at 1% is €3,524. Your solicitor (check the Law Society's register; see the conveyancing solicitor page) works this out and pays it within 44 days of closing. The stamp duty calculator shows the figure for any price.

Help to Buy, step by step

Help to Buy is for first-time buyers only. Everyone on the mortgage must be a first-time buyer. The home must be a new build bought from a builder on Revenue's list of qualifying contractors, and it must be your home. The price must be €500,000 or less, and your mortgage must be at least 70% of the price.

You apply in two stages on Revenue's online services. First you apply and Revenue tells you the most you could get. Then, once you sign contracts, you make the claim and the builder confirms it. Revenue pays the money to the builder as part of your deposit. If you do not live in the home for five years, Revenue can ask for the money back.

The scheme runs to the end of 2029. The Help to Buy guide explains every rule.

The First Home Scheme on a new build

If your mortgage and deposit still do not reach the price, the First Home Scheme can fill the gap. The State and your lender take a share of the home, up to 30%, or 20% if you also use Help to Buy. You pay no charge on the share for the first five years. Each council has a price ceiling; see the counties page. The First Home Scheme calculator shows how it fits.

Signing the contracts

The builder's solicitor sends the contracts to your solicitor. New-build contracts are longer than second-hand ones. There are usually two: a contract for the site and a building agreement for the house. Your solicitor reads both and raises questions.

Look for these points:

• The completion date. Most builders give an estimate, not a promise.
• The long-stop date. This is the last date the builder can deliver. After it, you can walk away and take your deposit back.
• The specification. The contract should list what is included: kitchen, flooring, appliances, tiling, garden.
• The management company. Apartments and many new estates have one, with a yearly fee. Ask how much.
• The warranty. Most new homes come with a 10-year structural warranty from HomeBond or a similar scheme. Ask which one.

When you sign, you pay the contract deposit. That is 10% of the price, less the booking deposit you already paid. Help to Buy can make up part of it. From then on the contract is binding on both sides. The signing contracts guide explains what that means.

Your loan offer may need extending

A full loan offer is usually valid for six months. A new build often takes longer than that to finish. If the house is not ready before the offer runs out, the lender looks at your position again and can issue a new offer. Keep your payslips and bank statements in order during the build. Do not change job or take on a car loan without asking your lender first. The loan offer guide covers the conditions.

The snag list

A snag is a small fault in a finished home: a door that sticks, a cracked tile, a radiator that does not heat, paint missed behind a pipe. Before you close, you walk through the home and list every snag. The builder fixes them. Then you check again.

You can do this yourself, but a professional snagger sees more. A snagger is usually an engineer or building surveyor (Engineers Ireland or the SCSI; see the snag list page). A professional snag list costs about €350 to €600 plus VAT. The snagger also checks things you cannot see at a glance: attic insulation, ventilation, the boiler and the BER.

Every new home must have a BER (Building Energy Rating) before it is finished. A new build is usually A-rated, which means it costs far less to heat than an older home and often qualifies for a green mortgage rate. The BER guide explains the scale.

Completion and the keys

The builder tells your solicitor when the house is finished. Your solicitor arranges the final checks, the snag list sign-off and the money. The lender sends the mortgage to your solicitor (this is called drawdown), your solicitor pays the builder, and you get the keys. The closing day guide walks through the day.

Three costs come at closing: stamp duty, your solicitor's fee and outlays, and the first year of home insurance. The lender needs buildings insurance from the day you own the home. Mortgage protection, a life policy that clears the loan if you die, is required by law under the Consumer Credit Act 1995, section 126, with narrow exceptions.

When the builder is late

Delays are common. Weather, materials and labour all slow a site down. The contract usually lets the builder move the date. What you can do:

• Ask the builder for a written update each month.
• Tell your lender early so the loan offer can be extended.
• Tell your landlord early if you rent, so you are not caught between two homes.
• Check the long-stop date with your solicitor. It is your way out if the delay goes on too long.

If you walk away after the long-stop date, you get your deposits back. You do not get your legal fees or other costs back unless the contract says so.

Where this leaves you

Run the Help to Buy calculator to see what the refund could cover, then follow the first-time buyer journey step by step. When you are near completion, get quotes for a professional snag list so the builder fixes the faults before you close.