Gifted Property and Tax

My question is simple enough ... my brother and i (brother lives in the uk ) inherited our family home 50/50, which i have been living in for the last 11 years, i want to buy my brothers half ... the house is valued at €200k he is prepared to take €60 instead of €100k ... i presume i will have to get a gifted letter drawn up for the €40k.
Question : .... will i have to pay tax on the €40 k

Thanks Nelson.

The first €32,500 should be covered by your Group B tax-free threshold, assuming that you haven’t received previous gifts or inheritances from grandparents/aunts/uncles/siblings. Then you’ve the €3,000 Small Gift Exemption. And you’ll be paying €60,000. Personally I’d find a valuer willing to sign-off on €190,000 and pay no tax, albeit with an obligation to submit a return on the basis of breaching 80% of the threshold.

Your brother may owe capital gains tax too if the value of the house has increased since you inherited it.

thank you kindly for taking the time to answer my question, on the point of my brother paying tax, the house was valued at €105,000 at the time of my mothers death ... so i presume 1/2 is €52.500 along with €3000 gift exemption his tax implications will be very small. And indeed if i was to point out all the faults in the house to valuer we might be able to get the price down to €190,000

The selling price for capital gains tax purposes will be the market value because he's selling to a connected person. On your figures, that would be roughly €15,000 of CGT.