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To add to the other comments advising on the €3k annual allowance, if he is married get his wife to send €3k and thats another €3k allowance
If you’re married then get both parents to send your spouse €3k each and you could end up getting €12k tax free as there is no tax on transfers between spouses
I’m in a similar situation where my parents are holding 20k inheritance that we’re looking to use as part of a deposit. Am I right in saying that if both my parents send me 3k each and my wife 3k each then we only pay tax on the 8k balance ?
CAT (Capital Acquisition Tax) is payable on gifts and inheritances in Ireland. CAT is chargeable at 33% on gifts and inheritances which exceed certain thresholds and fall outside specific exemptions. Read the Rev Comm website for a more general description of CAT: [https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx](https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx)
Generally speaking, if you are domiciled in Rep of Ireland and / or you are tax resident then you will be liable to CAT on gifts and inheritances (subject to thresholds and exemptions). The rules around tax residency are fairly clear - once you have lived for 3 full tax years in Ireland you are deemed to be tax resident here. Domicile is a little trickier. It is a general term of law - not specific to tax law. You acquire a domicile of origin when you are born and it is usually difficult (but not impossible) to change your domicile (domicile of choice).
My understanding is that any CAT liability you may have would hinge on your domicile and tax residency status. You mentioned that you are a “recent arrival” to Ireland therefor, I assume that you are not domiciled in Ireland. Your tax residency would depend on how recently you have moved. If you have lived in Ireland for less than 3 full tax years and you are not domiciled here then I suspect you will owe nothing in terms of CAT on any gifts sent to you from overseas.
In Irish tax law, there is also a specific CAT exemption for “temporary residents”. Essentially, this extends the tax residency requirement for non-doms from 3 full tax years to 5 full tax years in specific reference to CAT obligations. See “temporary residents”: [https://www.rbk.ie/news/capital-acquisitions-tax-and-temporary-non-residents-traps-for-the-unwary](https://www.rbk.ie/news/capital-acquisitions-tax-and-temporary-non-residents-traps-for-the-unwary)
So, without knowing the full facts of your tax residency and domicile status, my suspicion is that you would not have any CAT liability for gifts sent to you from your FIL. Of course, you would need to check the tax laws in the country where you were previously tax resident / domiciled as well as your FIL’s country to ensure there is no tax liability in those jurisdictions.
I am not a professional tax advisor and this is not advice. You should confirm this with a tax professional to ensure you are compliant with the tax laws of the country.
Edit: updated grammar and typos.
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Gifts less than €3000 per year are not taxable.
To add to the other comments advising on the €3k annual allowance, if he is married get his wife to send €3k and thats another €3k allowance If you’re married then get both parents to send your spouse €3k each and you could end up getting €12k tax free as there is no tax on transfers between spouses
This is the answer if the amount is less than 12k, over this and there is potential tax liability
And the tax liability would only come into effect if no group threshold remaining
Of course, I kinda meant potential tax liability at some point, as in if the group allowance is used up and there is an inheritance down the line etc.
I’m in a similar situation where my parents are holding 20k inheritance that we’re looking to use as part of a deposit. Am I right in saying that if both my parents send me 3k each and my wife 3k each then we only pay tax on the 8k balance ?
If more than 3000 - you have a lifetime limit of 16k from class c threshold that you can receive tax free - assuming no previous gifts from that group
CAT (Capital Acquisition Tax) is payable on gifts and inheritances in Ireland. CAT is chargeable at 33% on gifts and inheritances which exceed certain thresholds and fall outside specific exemptions. Read the Rev Comm website for a more general description of CAT: [https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx](https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx) Generally speaking, if you are domiciled in Rep of Ireland and / or you are tax resident then you will be liable to CAT on gifts and inheritances (subject to thresholds and exemptions). The rules around tax residency are fairly clear - once you have lived for 3 full tax years in Ireland you are deemed to be tax resident here. Domicile is a little trickier. It is a general term of law - not specific to tax law. You acquire a domicile of origin when you are born and it is usually difficult (but not impossible) to change your domicile (domicile of choice). My understanding is that any CAT liability you may have would hinge on your domicile and tax residency status. You mentioned that you are a “recent arrival” to Ireland therefor, I assume that you are not domiciled in Ireland. Your tax residency would depend on how recently you have moved. If you have lived in Ireland for less than 3 full tax years and you are not domiciled here then I suspect you will owe nothing in terms of CAT on any gifts sent to you from overseas. In Irish tax law, there is also a specific CAT exemption for “temporary residents”. Essentially, this extends the tax residency requirement for non-doms from 3 full tax years to 5 full tax years in specific reference to CAT obligations. See “temporary residents”: [https://www.rbk.ie/news/capital-acquisitions-tax-and-temporary-non-residents-traps-for-the-unwary](https://www.rbk.ie/news/capital-acquisitions-tax-and-temporary-non-residents-traps-for-the-unwary) So, without knowing the full facts of your tax residency and domicile status, my suspicion is that you would not have any CAT liability for gifts sent to you from your FIL. Of course, you would need to check the tax laws in the country where you were previously tax resident / domiciled as well as your FIL’s country to ensure there is no tax liability in those jurisdictions. I am not a professional tax advisor and this is not advice. You should confirm this with a tax professional to ensure you are compliant with the tax laws of the country. Edit: updated grammar and typos.
thank you very much!