Can I inherit money tax-free in Ireland?
Up to your tax-free group threshold, yes — above it, Capital Acquisitions Tax is 33%. CAT is charged at 33% on the value of a gift or inheritance above your Group threshold. Group A (a child inheriting from a parent) is €400,000; Group B (brother, sister, niece, nephew, grandchild) is €40,000; Group C (anyone else, e.g. a cousin or unmarried partner) is €20,000. Thresholds are lifetime cumulative — you add up everything received in that group since 5 December 1991, and only pay once the total exceeds the threshold. Key reliefs: gifts and inheritances between spouses or civil partners are completely exempt, an inherited home can pass tax-free under the Dwelling House Exemption, and the first €3,000 a year from any person is exempt. In short: yes within your threshold, 33% above it.
📋 The rules
- CAT is 33% above your group threshold
- Group A (parent→child): €400,000
- Group B (sibling, niece, grandchild): €40,000
- Group C (anyone else): €20,000
- Thresholds are lifetime cumulative since 1991
🔓 Exceptions
- Spouse/civil partner inheritances are completely exempt
- Dwelling House Exemption: an inherited home can pass tax-free
- Small Gift Exemption: first €3,000 a year from any person is exempt
⚠️ Penalties & fines
CAT was confirmed unchanged in Budget 2026. You must file an IT38 return and pay if the total benefits in a group exceed 80% of the threshold. For valuation dates between 1 January and 31 August, the pay-and-file deadline is 31 October that year; for dates from 1 September to 31 December, it's 31 October the following year. Late filing brings surcharges of 5–10% of the tax due plus daily statutory interest (about 8% a year). The rate is 33% on the excess over the threshold. Beware a myth: "inheritance tax in Ireland is paid by the estate" is false — CAT is a tax on the beneficiary, calculated on what each person receives, and each beneficiary files and pays separately. To plan: use the €3,000 small-gift exemption and check whether the Dwelling House or spouse exemptions apply.
📎 Official sources
❓ Frequently asked
How much can I inherit tax-free in Ireland?
It depends on your relationship to the person. A child inheriting from a parent (Group A) can receive up to €400,000 tax-free. A brother, sister, niece, nephew or grandchild (Group B) can receive €40,000, and anyone else (Group C), such as a cousin or unmarried partner, €20,000. Above these thresholds, Capital Acquisitions Tax of 33% applies.
Are the thresholds per gift or lifetime?
They're lifetime cumulative. You add up the taxable value of all gifts and inheritances you've received within the same group since 5 December 1991. You only start paying Capital Acquisitions Tax once that running total exceeds your group threshold, so several smaller inheritances can together push you over the limit.
Do spouses pay inheritance tax?
No. Gifts and inheritances between spouses or registered civil partners are completely exempt from Capital Acquisitions Tax, with no limit. So a surviving spouse can inherit the entire estate tax-free. This exemption doesn't extend to unmarried partners, who fall into Group C with just a €20,000 threshold.
What is the Dwelling House Exemption?
The Dwelling House Exemption can let you inherit a home completely tax-free, regardless of value or group, if you lived in it for the three years before the death, have no interest in another property, and continue to live there for six years after. It's mainly aimed at people who genuinely shared the home.
Who pays the inheritance tax?
In Ireland, Capital Acquisitions Tax is paid by the beneficiary — the person receiving the gift or inheritance — not by the estate. Each beneficiary works out the tax on what they personally receive, files their own IT38 return, and pays separately, once their cumulative benefits in a group exceed the threshold.
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