Inheritance tax and inheritance law in Ireland
October 23, 2018
INHERITANCE TAX
CAPITAL ACQUISITIONS TAX (CAT)
A tax called the capital acquisitions tax is levied on inheritances in Ireland. The beneficiary is liable to pay the tax. Inheritances between spouses are tax-exempt.
Capital acquisitions tax is imposed at a flat rate of 33%. The tax is levied on the market value of inheritance. Any liabilities or debts connected to the inheritance are deductible to arrive at the taxable value.
A non-taxable threshold amount is provided for beneficiaries, with the applicable threshold amount varying depending on the relationship between the deceased and the beneficiary.
CAPITAL ACQUISITION TAX-FREE: THRESHOLD AMOUNTS |
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| BENEFICIARY | THRESHOLD AMOUNT, € | |
| Son, daughter | €225,000 | |
| Parent, brother, sister, niece, nephew, grandchild | €30,150 | |
| Others | €15,075 | |
| Source: Global Property Guide | ||
In the case of real estate property, the tax may be paid by installments over a period of 5 years; however, interest charges will be applied.