The 3-year cap on your home

What the cap actually is

Under Fair Deal, the HSE assesses 7.5% of the value of your assessable assets per year, including your home. The 3-year cap says that for your principal residence only, the property element of that calculation stops after three years. After year 3, your home is no longer counted, even if you stay in care for another decade.

On a €350,000 home that's a saving of €26,250 a year from year 4 onward (€350,000 × 7.5%). For a couple it's still €13,125 each per year.

What counts as your "principal residence"

The home you lived in immediately before going into care. It does not have to be in your sole name; it can be jointly owned with a spouse, partner, or any other person — provided you ordinarily lived there.

The 3-year cap does not apply to:

• Holiday homes, second homes, buy-to-let property
• Investment property, land that isn't part of your principal residence
• Anything you transferred away in the 5 years before applying (it's added back)

These remain assessable indefinitely at 7.5% per year. They are also separately listed in Part 3C of the application form.

When the clock starts

The 3 years run from the date you enter long-term care — not from the date you apply, and not from the date the State Support is approved. If you enter on 1 June 2024, the home stops being assessable on 1 June 2027.

When the clock can pause or reset

If you leave long-term care for a continuous period (for example, you move home for rehabilitation and stay out of nursing care for more than six months), the clock can be affected. In practice, most applicants stay in continuously and the 3 years run uninterrupted.

You don't apply for the cap — it applies automatically

There is no form, no checkbox, no separate application. The HSE applies the cap when you cross the three-year threshold. You should still ensure your principal residence is clearly identified on Part 3C of the form so it can be tracked.

What about farms and businesses?

Family-owned and operated farms or "relevant businesses" can apply for an equivalent 3-year cap on the farm or business asset, but only if they meet strict eligibility:

• The farm or business must be family-owned and operated.
• You, your spouse / partner, or your proposed family successor must have been actively running it for at least 3 of the last 5 years.
• You must nominate a family successor who commits to running the asset for 6 years after the cap is granted.
• The successor must be aged 18 or over and meet the relative test.

This is Part 6 of the Fair Deal form, and it is the only "extra" cap available beyond the principal-residence cap. Read our overview for context.

What if I sell my home while in care?

You can sell at any time. Any sale proceeds become cash assets and are added to your assessment. If you have already taken the Nursing Home Loan, the deferred amount secured against the property must be repaid within six months of the sale. Tell the local Nursing Homes Support Office before you sell.