Tax liability on inheritance from a different country

pennywise

Registered User
Hi

My husband and myself are both foreign nationals from another EU country. Kids have an Irish passport. Which tax rules apply for inheritance? The ones from our parents country or Irish rules?

Thanks
 

Marc

Frequent Poster
If you are genuinely non-domiciled (where do you call home, do you intend to return etc?) then you are not liable to Irish Capital Acquisitions tax until you have been Irish resident for 5 consecutive tax years.

At which point you will be subject to Irish Inheritance tax and possibly depending on where your parents live, also taxes in their country.

For example I am subject to UK inheritance tax on my worldwide assets and Irish CAT on land and property here in Ireland.

My kids are Irish, have Irish passports but take the domicile of their father so they are Irish citizens, Irish resident but UK domiciled.

It’s worth setting out your circumstances in a little more detail than you have and, as necessary, taking legal advice here - I can recommend some very good lawyers who will then be able to reach out to your parent’s lawyers and formulate a plan.
 

pennywise

Registered User
Thanks for your answer. To clarify, we've been here 19 years, home owners, working for Irish companies and paying taxes. I'm in the process of applying to citizenship to get voting rights. My parents want to give some of their inheritance to their grandchildren, and the question came up with their solicitor about taxes. She doesn't have any knowledge in EU laws and advised us to find out. My parents are from France
 

jpd

Frequent Poster
Inheritance taxes in Ireland are paid by the inheritor and the provenance of the inheritance does not come into account other than tax paid in the originator country may be off-settable against tax due in Ireland. The double taxation treaty between Ireland and France does not cover capital acquisition taxes but unilateral relief will be available.

In France, gifts to grandchildren are taxed according to a rising scale
 
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Marc

Frequent Poster
So, two examples where the provenance of the inheritance are extremely relevant, there may be more examples

USA - if an Irish resident inherits from a US resident, the USA taxes the inheritance as full and final liability. Even if the tax paid in the USA is nil due to the exceptionally large exemption.

UK - if one takes an inheritance from the UK it is possible to vary the UK Will (say to a trust) within two years of death provided all the beneficiaries of the will are over the age of majority and in agreement to the variation.

That would prevent the inheritance hitting in Ireland and potentially avoid Irish CAT.
 
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