Is there a tax regime in Ireland in respect of gifts and inheritances?
A. Yes, Capitals Acquisitions Tax (CAT) is payable in respect of gifts and inheritances. In general the tax applies to gifts or inheritances made by or to an Irish tax resident or ordinarily resident individual or made in respect of property located in Ireland. The current CAT rate is 25%. Various exemption thresholds apply, depending on the relationship of the disposer to the recipient of the gift. In addition, specific rules are in place with regard to the exposure of non Irish domiciled individuals to Irish Capital Acquisition Tax. Such individuals will not be subject to Irish Capital Acquisitions Tax unless they have been resident in Ireland for the five consecutive years of assessment preceding the year of assessment in which the gift/inheritance occurs and they are resident or ordinarily resident in that year.
