Gifts and inheritances
Gift tax in Ireland: what you can give and receive tax-free
Last updated 16 October 2026
The first €3,000 a year from each person is tax-free. Above that, gifts count against your lifetime threshold, then pay 33%.
Gift tax is Capital Acquisitions Tax on something given to you during the giver's lifetime. It works like inheritance tax: the receiver pays 33% on the value above their group threshold, after the small gift exemption.
The small gift exemption
The first €3,000 of gifts you receive from any one person in a calendar year is exempt. Two parents can each give a child €3,000 a year tax-free, and the same again to the child's spouse. It doesn't apply to inheritances.
Above that, your lifetime threshold
Anything over €3,000 counts against your tax-free threshold for that relationship. From 7 October 2026, the threshold is €420,000 from a parent and €44,000 from a grandparent, brother, sister, aunt or uncle. From anyone else it is €22,000. Gifts and inheritances in the same group since 5 December 1991 all count. See the Budget 2027 thresholds.
Example: €40,000 from a grandparent
| Gift | €40,000.00 |
| Less small gift exemption | (€3,000.00) |
| Taxable value | €37,000.00 |
| Group B threshold left | €44,000.00 |
| Gift tax | €0.00 |
No tax, but €37,000 of the grandchild's €44,000 threshold is used. Because that is over 80% of the threshold, they must file a Form IT38 return.
When the giver pays the tax
If the giver pays the gift tax, that payment is a further gift. Revenue taxes the gift and the tax paid together. For a €40,000 gift to a friend who has used their Group C threshold, tax of €12,210 becomes €16,239.30 once the giver pays it.
Gifts that aren't taxed
- gifts between spouses or civil partners
- a home given to a dependent relative who has lived there three years (see the dwelling house exemption)
- normal support of a child, such as their education and upkeep
Free use of a home, and family loans
Letting someone live in your property rent-free, or lending money interest-free, is a gift each year. See family loans and gift tax.
Work it out
Sources
- Revenue: What do you not pay CAT on? (spouses, €3,000 small gift exemption) (checked 25/10/2026)
- Revenue: CAT group thresholds (€420,000 / €44,000 / €22,000 from 7 October 2026) (checked 25/10/2026)
- Revenue: CAT aggregation rules (prior benefits since 5 December 1991) (checked 25/10/2026)
- Revenue: How do you calculate CAT? (tax paid by the disponer) (checked 16/10/2026)
- Revenue: How and when do you pay and file CAT? (31 October by valuation date) (checked 25/10/2026)
- Revenue: IT38 filing obligations (80% of the group threshold) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.