CAT on Foreign Property

Q. My late aunt has left me a property in her will. She has been living in France for the last 20 years and the property is situated in France as well. Will I have to pay inheritance tax on these foreign assets?  

18th July 2018

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.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. 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 forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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1890 98 76 09

Or submit an enquiry