Inheritance tax for people abroad

P

partnership

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Our only son lives in Australia. Our will leaves everything to him probably just a house worth 400k. Does he have to pay tax? In Australia there is no tax. If we were to retire to Australia and house is here what is the situation then. Is it Australian rules or Irish.
 
Where, at the date of the gift or inheritance, either the disponer or the beneficiary is resident or ordinarily resident in Ireland, worldwide assets comprised in a gift or inheritance are liable to Irish CAT. If neither the disponer nor the beneficiary is resident or ordinarily resident in Ireland, at the date of the gift or inheritance, CAT will apply to assets situate in the State only.

So you can all live abroad but Irish inheritance tax applies to an Irish property.
 
So basically if we retire to Australia we are better if selling our house and moving money to Australia?
 
partnership said:
So basically if we retire to Australia we are better if selling our house and moving money to Australia?
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Yes absolutely. The inheritance tax would disappear. You would remove currency risk. You’d avoid being an absentee landlord.

Why anyone would keep a property after emigrating is beyond me
 
Marc said:
Yes absolutely. The inheritance tax would disappear. You would remove currency risk. You’d avoid being an absentee landlord.

Why anyone would keep a property after emigrating is beyond me
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May be on temporary or bridging visa until permanent comes through which could take 6 to 10 years. If you fail medical would have to leave. However this is something we need to consider.
 
partnership said:
Our only son lives in Australia. Our will leaves everything to him probably just a house worth 400k. Does he have to pay tax? In Australia there is no tax. If we were to retire to Australia and house is here what is the situation then. Is it Australian rules or Irish.
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He’d pay (€400k - €335k) x 33%, i.e. €21k.

Hardly worth turning one’s life upside down for.
 
What if the son in the Australia was left say cash that was on deposit of €400k held by the disponer in an Irish bank ,rather than a property. What would be the tax implications then ?
 
Exactly the same - it makes no difference at all if the inheritence is property, shares, or money
 
Ok , thanks jpd. Hope this is not a stupid question but would the son also have to pay additional Australian taxes to the Australian Revenue ?
 
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