Gifting land but previous owner keep usufruct

Deub

Hi All,

I am trying to find information on Revenue.ie but no luck so far.

If I receive land in an EU country from a parent but they have the usufruct (they pay the local tax and receive the rent), how do I declare this to the Revenue.

I understand the tax affair needs to be sorted in the EU country but what about Ireland?

Do I declare only a portion of the land value as the former has the usufruct (and the rest after the death of the former owner) or do I declare everything when the former owner passes away?

Thanks

elperello

https://www.boards.ie/discussion/2058390713/gifting-land-but-previous-owner-keep-usufruct

In such a circumstance it appears you would have no use of the land nor derive any other benefit from ownership.

CelticRambler

I had the reverse situation (Irish property inherited from grandparent, usufruct enjoyed by an uncle) and the French attitude was that there was no inheritance to be declared until the usufruct expired and I could freely exploit the property.

Deub

https://www.boards.ie/discussion/comment/123085893#Comment_123085893

It is correct. Any costs or benefits are for the previous owner.

Does it mean I have nothing to declare now?

Deub

https://www.boards.ie/discussion/comment/123085951#Comment_123085951

Did you declare anything in Ireland?

CelticRambler

https://www.boards.ie/discussion/comment/123086606#Comment_123086606

No. The property was divided between all the grandchildren, so the value of the inheritance was relatively small. When the usufruct expired, we collectively decided to sell and divide the proceeds. The solicitor settled all the property-related taxes and charges out of the proceeds and we each collected a lump-sum. As I haven't had any fiscal connection with Ireland for more than thirty years, I declared the entirety on my French return (which was promptly ignored, being below the threshold for inheritance from a family member).

elperello

https://www.boards.ie/discussion/comment/123086601#Comment_123086601

The rules of this site preclude us from giving legal advice.

The best I can add is that you should consult a solicitor before proceeding.

Deub

https://www.boards.ie/discussion/comment/123087048#Comment_123087048

Thanks. I thought there would some documentation about it so I can get an idea.