17 Aug 2026
Note: This article provides general information only and does not constitute tax or legal advice. For guidance on inheritance tax specific to your situation, consult a qualified tax adviser or solicitor, or visit revenue.ie.
If you live in Ireland, or if you are receiving assets from someone based here, you need to understand Capital Acquisitions Tax (CAT). This is what Ireland calls its inheritance and gift tax, and it applies whether the assets are in Ireland or abroad, as long as either the giver or receiver is Irish-resident.
For immigrants living in Ireland, or for those sending money between Ireland and their home country, understanding how CAT works is genuinely important. It affects how much your family keeps, how you structure gifts during your lifetime, and how your estate is handled after you are gone.
Capital Acquisitions Tax is a tax charged on the value of gifts and inheritances. It applies to you as the person receiving the benefit, not the person giving it. CAT applies to all property physically in Ireland, and also to property outside Ireland if either the giver or receiver is resident or ordinarily resident in Ireland for tax purposes.
The current rate of CAT is 33% (rate subject to change — verify at revenue.ie). This rate applies to the portion of a gift or inheritance that exceeds your tax-free threshold.
Example: if your threshold is €400,000 and you receive €550,000, you pay 33% on €150,000 (the excess), which comes to €49,500. You do not pay 33% on the full amount.
Figures correct as of 2026, subject to change. Verify at revenue.ie before acting.
The amount you can receive tax-free depends entirely on your relationship to the person giving you the gift or inheritance. These thresholds are cumulative lifetime totals since 5 December 1991.
Thresholds subject to change — verify at revenue.ie.
| Group | Threshold (subject to change — verify at revenue.ie) |
| Group A: Child, stepchild, adopted child, foster child | €400,000 |
| Group B: Sibling, parent (certain cases), grandparent, grandchild, niece, nephew | €40,000 |
| Group C: Any other relationship | €20,000 |
These thresholds apply to the cumulative value of all gifts and inheritances received from people in that group since 5 December 1991 — they are not per-gift or per-year limits.
Gifts and inheritances between spouses or civil partners are completely exempt from CAT. There is no upper limit on this exemption.
You can receive up to €3,000 per year from the same person without it counting toward your CAT threshold. This is particularly useful for immigrants who receive regular financial support from family abroad — amounts under €3,000 per giver per year fall entirely outside CAT.
Figures correct as of 2026, subject to change. Verify at revenue.ie before acting.
If you inherit a farm or a business, significant reliefs may apply that can reduce the taxable value of those assets by up to 90%. These reliefs have specific conditions — consult a qualified tax adviser or solicitor for guidance specific to your situation.
If you are a niece or nephew who has worked full-time in a relative's business for at least five years, you may qualify to use the Group A threshold instead of the Group B threshold.
If the total value of gifts and inheritances received in a group exceeds 80% of the relevant group threshold, you must file a CAT return with Revenue, even if no tax is due.
Filing and payment deadlines:
• Valuation date between 1 January and 31 August: deadline is 31 October of the same year
• Valuation date between 1 September and 31 December: deadline is 31 October of the following year
You can file online using Revenue's myAccount service or through ROS. The CAT tax return is Form IT38 and must be filed online by the deadline.
If you are an immigrant living in Ireland, CAT can apply to assets you receive from abroad if you are resident or ordinarily resident in Ireland for tax purposes. Double taxation agreements between Ireland and your home country may affect how you are taxed.
This is an area where professional advice is essential. Consult a qualified tax adviser or solicitor, or visit revenue.ie for guidance specific to your situation.
Note: This article provides general information only and does not constitute tax or legal advice. For guidance on inheritance tax specific to your situation, consult a qualified tax adviser or solicitor, or visit revenue.ie.
The core of Capital Acquisitions Tax is straightforward: the tax-free threshold depends on your relationship to the person you receive from, tax at 33% (rate subject to change) applies only above the relevant group threshold, and good tax planning can reduce the burden. Planning ahead can help reduce a future tax bill or avoid having to pay inheritance tax unexpectedly.
Consult a qualified tax adviser or solicitor for advice specific to your situation. Verify current rates and thresholds at revenue.ie before acting.
To send money home securely, visit acemoneytransfer.com or download the ACE Money Transfer app.
Yes, effectively. Capital Acquisitions Tax is Ireland's equivalent of inheritance tax, covering both gifts and inheritances at 33% (rate subject to change — verify at revenue.ie) above the relevant cumulative lifetime threshold.
Possibly. If you are resident in Ireland for tax purposes, CAT can apply to gifts or inheritances you receive from abroad. The small gift exemption of €3,000 per year per person may cover smaller regular transfers. For larger amounts, consult a qualified tax adviser or solicitor.
Missing the deadline can result in interest charges, surcharges, and penalties from Revenue. File as soon as possible if you have missed a deadline.
Yes, within limits. Each person can give up to €3,000 per year per recipient under the small gift exemption. Beyond that, the Group A lifetime threshold of €400,000 applies (thresholds subject to change — verify at revenue.ie). Amounts above the threshold are taxed at 33%.
No. Gifts and inheritances between spouses and civil partners are completely exempt from CAT with no upper limit.
