Inheritance tax and inheritance law in Ireland

Taxation Researcher | January 20, 2022

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

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.