Query regarding Gift Tax

Sgt Hartman

Myself and my partner are currently saving for a mortgage and his mother in Brazil is giving us a sum of money towards our deposit savings. She will be transferring the money directly into his Brazilian bank account and then he will transfer it from there into his Irish account.
My question is, seeing as the money is coming from Brazil, being placed into his Brazilian account and then being transferred to his Irish account, would this money be still liable for gift tax here in Ireland if the sum is over €3000?

Henry Ford III

Not sure the geographical source matters. Usual CAT thresholds apply

i71jskz5xu42pb

Looks like the €3k limit stands, does not seem to matter where the gift is coming from
https://liamburnsandco.ie/services/capital-acquisitions-tax/#Taxable_benefits_received_from_other_countries

One option - the €3k is per calendar year. So in theory she could send up to €3k each to you and your partner before the 31st and up to €3k after the 31st - which would be €12k in total. Not sure what kind of sums you are looking at or how easy that would be to do over Christmas.

Sleeper12

The lifetime tax free inheritance/gift from your parents is over 300,000.

Sgt Hartman

Kaylin Loud Shoehorn wrote: »

Looks like the €3k limit stands, does not seem to matter where the gift is coming from
https://liamburnsandco.ie/services/capital-acquisitions-tax/#Taxable_benefits_received_from_other_countries

One option - the €3k is per calendar year. So in theory she could send up to €3k each to you and your partner before the 31st and up to €3k after the 31st - which would be €12k in total. Not sure what kind of sums you are looking at or how easy that would be to do over Christmas.

Oh okay, She was thinking of sending approx €6k. I'll ask my partner and she if she can send half before December 31st if possible. If the timeline is too tight then she could try sending us both €3k each in January. Thanks again for the information. We're just doing as much homework as we can before we chat to the banks.

Marcusm

Sgt Hartman wrote: »

Myself and my partner are currently saving for a mortgage and his mother in Brazil is giving us a sum of money towards our deposit savings. She will be transferring the money directly into his Brazilian bank account and then he will transfer it from there into his Irish account.
My question is, seeing as the money is coming from Brazil, being placed into his Brazilian account and then being transferred to his Irish account, would this money be still liable for gift tax here in Ireland if the sum is over €3000?

How long has your partner been here? If he is not a Irish domiciled and he has been resident for fewer than five tax years, no CAT applies. In any event, no tax is current payable irrespective of whether its <3k per annum or less than group threshold.

Sgt Hartman

Marcusm wrote: »

How long has your partner been here? If he is not a Irish domiciled and he has been resident for fewer than five tax years, no CAT applies. In any event, no tax is current payable irrespective of whether its <3k per annum or less than group threshold.

He's been here just over 3 years now and he has a permanent contract in his job here. Would this mean he would be exempt from the gift tax?

Maximus47

Marcusm is right in the 5 year rule if he is not Irish domiciled and if is also possible to become non resident in the 5th year to break the cycle - become non resident and start again. Also € 310,000 is the limit from parent going up to € 320,000
the Partner could be given 15K plus the small gift exemption of 3K also.