Page 1 of 1

Irish gift tax or inheritance tax

Posted: Sun Sep 20, 2020 11:02 pm
by zemmac
Hi,

I have a doubt about irish inheritance tax. According to boglehead "Non-residents of Ireland are not liable to Irish gift tax or inheritance tax"
(source: https://www.bogleheads.org/wiki/Nonresi ... _an_NRA.3F)
But in revenue.ie website we can read the following:
"Property situated in Ireland at the date of the death is liable to Probate Tax, irrespective of the domicile or residence of the disponer."
(source: https://www.revenue.ie/en/gains-gifts-a ... e-tax.aspx)
Is there any inconsistance between those informations?

Thanks.

Re: Irish gift tax or inheritance tax

Posted: Mon Sep 21, 2020 2:52 am
by TedSwippet
Welcome.
zemmac wrote: Sun Sep 20, 2020 11:02 pm I have a doubt about irish inheritance tax. According to boglehead "Non-residents of Ireland are not liable to Irish gift tax or inheritance tax"
(source: https://www.bogleheads.org/wiki/Nonresi ... _an_NRA.3F)
But in revenue.ie website we can read the following:
"Property situated in Ireland at the date of the death is liable to Probate Tax, irrespective of the domicile or residence of the disponer."
(source: https://www.revenue.ie/en/gains-gifts-a ... e-tax.aspx)
Is there any inconsistance between those informations?
According to Revenue Ireland, the Probate Tax was apparently abolished some time ago:

https://www.revenue.ie/en/gains-gifts-a ... index.aspx
Probate Tax is abolished for deaths occurring on or after 6 December 2000, including postponed probate tax becoming due after this date.
As for the Capital Acquisitions Tax, from Revenue Ireland:

https://www.revenue.ie/en/tax-professio ... part23.pdf
23.6 Exemption of certain investment entities
CATCA 2003 s.75 provides an exemption from tax for gifts and inheritances of units of certain investment entities (defined in the TCA 1997, Part 27). Units held in collective investment schemes, common contractual funds, investment limited partnerships or investment undertakings are exempt from tax in cases where neither the disponer nor the donee or successor is domiciled or ordinarily resident in the State, at the date of the disposition and at the date of the gift or inheritance, respectively. The CAT exemption applies in the case of the transfer of units in an investment limited partnership notwithstanding that this type of entity has been removed from the definition of “investment undertaking” in section 739B(1) TCA 1997.
So provided that both you and your heirs are not resident or domiciled in Ireland, Ireland's "Capital Acquisitions Tax" (its equivalent to inheritance/estate taxes) and its "Probate Tax" will not apply to any Ireland domiciled funds or ETFs that you hold.

(I have updated the wiki page you noted to include a reference to this Revenue Ireland document, replacing a now-broken reference to a KPMG paper.)

Re: Irish gift tax or inheritance tax

Posted: Mon Sep 21, 2020 2:18 pm
by zemmac
Ted, thank you so much for your answer!