The Irish government will pay you £70,000 to go live there – but what’s the catch?

The Irish government is paying people up to €84,000 – the equivalent of £69,650 – to buy a property in one of the country’s offshore islands.

Since July 2023, funding from the Vacant Property Refurbishment Grant has been available to those refurbishing vacant or derelict properties located on certain islands.

The policy aims to boost population levels on the islands, as well as improving housing and infrastructure and providing better access to essential services in health and education.

But the sizeable grants are only available to people who are willing to purchase a building that was constructed no later than 2007 – and the property also needs to have been vacant for a minimum of two years. 

Anyone tempted to escape to a remote life off the coast of Ireland should be aware they could be opening the door to some serious renovation costs – and that there are some catches that come with the money.

In total there are 23 inhabited offshore islands that qualify for the scheme. As of 2016 these islands had a combined population of just 2,734.

However, the number of people living on the islands has potentially risen since the grant was introduced. 

While the government could not confirm how many applications they have received specifically for homes on the islands, it says that the overall scheme has received more than 10,000 applications with 6,713 of these thus far approved.

Islands available to relocate to as part of the scheme include Inishmore – the largest and most popular of the Aran Islands off the west coast of Ireland. As of 2016, the population was estimated at 762.

You could also move to Cape Clear Island – the southernmost inhabited island in Ireland – it had a population of 147, according to the 2016 census.

Who gets €84,000 to do up a remote Irish home?

Successful applicants could receive as much as €84,000 (£69,650) to transform a property into a remote island paradise.

While the standard Vacant Property Refurbishment Grant offers up to €50,000, or up to €70,000 in the case of homes deemed to be derelict, the government is offering more to those prepared to refurbish properties on the qualifying islands.

This means that those willing to brave a refurb job on one of the islands can secure up to €60,000 for the refurbishment of a vacant property, or up to €84,000 where the property is also derelict.

A property is deemed to be derelict, where it is found to be ‘structurally unsound and dangerous.’

How to apply for Irish grants?

Anyone can apply, regardless of whether they are an Irish resident or not, as long as they plan to buy a property to do up and either live there permanently, or rent it out. It could not be used as a holiday home though.

For those planning to do up a property to let it out, that is also possible, as long as they are not doing so as a registered company or developer.

The Vacant Property Refurbishment Grant is handled by local authorities on behalf of the Department of Housing, Local Government and Heritage. 

Each local authority therefore decides on applications for the grant. 

Properties must have been built no later than 2007 and they also must have been vacant for two years or more at the time of application. Anyone applying must provide evidence of this.

Those applying for the grant will need to clarify if they are applying for the Vacant Property Refurbishment Grant alone or the Vacant Property Refurbishment Grant including the Derelict Property top-up Grant. 

J.J. O’Sullivan Beara Estate Agent is offering this Site in Bere Island for sale. There is a large ruin on the site which will be eligible for the Derelict Property Grant Scheme

The site is located on the east side of Bere Island

J.J. O’Sullivan says the ruin comes with previous planning permission and has a septic tank fitted, electricity supply board and water are close by

The level of grant will be contingent on the works approved by the local authority and will be paid based on evidence such as invoices, receipts following a final inspection by the local authority.

For those looking to obtain the maximum €84,000 grant and refurbish a derelict building these can sometims be found on a derelict sites register with each local authority.

If a property is not registered then an independent report needs to be prepared by a qualified professional along with the application.

This will enable the local authority to confirm the property is indeed structurally unsound and dangerous and eligible for the maximum grant funding.

Those applying for the grant will need to clarify if the property will be their principal private residence or a property available for rent. The grant is available for both owner occupiers and landlords.

Pictured: Old church ruins on the top of the rocky hill in Inishmore, an island located off the coast of Galway which is eligible under the scheme

Pictured: An abandoned house on Arranmore island in County Donegal. Another island that is eligible under the scheme

Anyone who gets a grant to refurbish a home to rent out, should be aware that the grant will not be paid until they give the local authority evidence that they’ve registered the tenancy with the Residential Tenancies Board.

They will also need to submit proof to the local authority every year that they have registered the tenancy with the RTB annually for 10 years following the payment of the grant.

It’s also worth noting that only one grant can be paid per person in respect of a vacant property being refurbished to let out.

There is a maximum of two grants per person so one could refurbish one property to live in and one property to let out.  

If successful, a letter of approval will be sent to the applicant. This will include the approved grant amount. 

Approval is granted from the date of issue of the letter and is valid for a period of 13 months. 

Works can commence on the property once you have received a letter of approval or an approval in principle from the local authority.

Move to Sherkin: The island is located on the south west coast of Ireland. It is three miles long with a population of around 100

What happens if you sell the property?

A person needs to live in or rent the qualifying property for at least 10 years from the date of payment of the grant to avoid having to pay large sums back. 

If someone decides to sell the property, or it ceases to be their main home, or the property is no longer being rented  they may need to reimburse the local authority all or part of the grant.

In the first five years this amounts to repaying everything back. Between five and 10 years this equates to repaying 75 per cent of the grant back. 

Only after 10 years can people do as they wish without having to repay the grant.

Have you had an Irish property grant? Tell us about your experience and what you have done with a property at editor@thisismoney.co.uk