CAT on Foreign Property

A. The Capital Acquisitions Tax rules state that where the person making the inheritance or the person receiving the inheritance is tax resident in Ireland at the time of the inheritance then Capital Acquisitions Tax (CAT) is due on the value of the assets. CAT is always due on Irish situate assets regardless of the tax residency of the person making or receiving the inheritance.

You can receive up to €32,500 in total in gifts/inheritances from aunts, uncles, brothers, sisters, grandparents, grandchildren, sons and daughters in your lifetime tax-free.

Previous gifts and inheritances that you would have received from family members outlined above must be added to the current inheritance and if the total amount is in excess of €32,500 then tax at a rate of 33% is due on the excess amount over €32,500.

It should be noted that taxes may also be due in France on the inheritance and you would need to ensure that all tax liabilities are calculated and settled there as well.

Date published 18 Jul 2018

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.