Why do Expats have to pay 30% on Inheritance and why in advance

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frankde

Registered User
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Just wondering why long term expats have to pay 30% on any inheritances they receive from Ireland?
I have a buy to let in Ireland and pay 20% on any profits I have, which is understandable as I need access to services like Police and Fire Services if needed
But paying 30% tax on any inheritances, that I do not understand. As far as I see the only service i am paying for is the probate office to process the app;ication which considering the length of time it takes are woefully understaffed. So not sure why I need to pay 30% for this service.....

The other thing that gets me is that for expats this 30% has to be paid in advance....
 
You pay the tax before you die?!
That weird.

Why do people talk about paying inheritance tax when they die? They pay no tax. The person or persons who inherited their assets pay the tax.
 
I have no idea what any of this means. Non Residents pay 33% in relation to Irish assets on anything above the tax-free thresholds, but it’s not payable in advance.
 
Gordon Gekko said:
I have no idea what any of this means. Non Residents pay 33% in relation to Irish assets on anything above the tax-free thresholds, but it’s not payable in advance.
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Yes it’s paid in advance by expats
On previous inheritance I received the money was not released until I had paid the tax in advance
 
Hi Frank

it's quite common for Irish tax to be deducted by the payer before the payment is made outside the country.
Otherwise, the recipient is less likely to pay it.

So I presume, from what you say, if the Executor of an Irish will is paying a beneficiary outside the country €100,000, they must deduct €33,000 and pay it over to Revenue.

I wasn't aware of this, but it makes a lot of sense.

Brendan
 
frankde said:
Yes it’s paid in advance by expats
On previous inheritance I received the money was not released until I had paid the tax in advance
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Is it deducted from the inheritance before you get it or do you have to come up with the cash in advance?
 
Brendan Burgess said:
Hi Frank

it's quite common for Irish tax to be deducted by the payer before the payment is made outside the country.
Otherwise, the recipient is less likely to pay it.

So I presume, from what you say, if the Executor of an Irish will is paying a beneficiary outside the country €100,000, they must deduct €33,000 and pay it over to Revenue.

I wasn't aware of this, but it makes a lot of sense.

Brendan
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Thanks! Brendan.
Basically being an expat leads to the following:

The Executors are secondarily liable for my inheritance tax and

The Executors are required to give one month's notice of their intention to distribute my portion to the Revenue Commissioners before they can release this to me. This notice can’t be served on the Revenue Commissioners until the Inheritance Tax Return is filed and the tax payable paid.

So in the case of your example I would pay €33,000 in advance, and after about a month I then receive the €100,000,
 
Purple said:
Wow, that's crazy. Why can't the executor just deduct it and pay it from the inheritance before giving you the balance?
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Yep crazy indeed. That would be the simplest approach, but I was told by the Solicitor "The Executors are secondarily liable" so it appears I have the duty to pay this.
Maybe there is a way of having the executor deduct this, but considering their age, and the solicitor handling the probate being generally un-responsive/very slow, I will just pay the tax in advance myself
 
frankde said:
Yep crazy indeed. That would be the simplest approach, but I was told by the Solicitor "The Executors are secondarily liable" so it appears I have the duty to pay this.
Maybe there is a way of having the executor deduct this, but considering their age, and the solicitor handling the probate being generally un-responsive/very slow, I will just pay the tax in advance myself
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The executor can definitely pay your tax out of money in the estate held for you.
 
MOB said:
executor can definitely pay your tax out of money in the estate held for you
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Thats if there is cash.

For one estate, for which I was executor; beneficiary wanted property put in their name (as opposed to it being sold).

Since they lived overseas they had to pay the tax first, as there was no other cash due to them in the estate.

From memory the amount wasn't huge (5 or 6k); but they were rather thick about having to pay it.
 
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