Inheritance Tax in Ireland: What You Actually Owe (CAT Explained)
In Ireland the tax on an inheritance or gift is paid by the person receiving it — not the estate. It's called Capital Acquisitions Tax (CAT) and it works very differently to what most expats expect from home.
How the thresholds work
You have a lifetime tax-free threshold that depends on your relationship to the giver — not per gift. Group A (child from parent): €400,000. Group B (sibling, niece, nephew, grandchild): €40,000. Group C (everyone else): €20,000. All gifts and inheritances from that group over your lifetime count toward the same threshold.
The rate is 33%
Anything above the threshold is taxed at 33%. So a child inheriting €500,000 pays CAT on €100,000 = €33,000.
Key exemptions
Between spouses/civil partners: fully exempt. Small gift exemption: €3,000 per person per giver per year, ignored entirely. Dwelling house relief and business/agricultural relief can significantly reduce large inheritances if conditions are met.
The deadline that catches people out
If the value received in the year to 31 August is above 80% of your threshold, you must file a CAT return by 31 October of the same year. Miss it and Revenue adds interest and surcharges.