Gift Tax in Ireland 2027: How Much Can You Give Tax-Free?

If somebody gives you money, shares, a house, land or another valuable asset in Ireland, the tax that can apply is Capital Acquisitions Tax (CAT).

People usually call it gift tax when the transfer happens during the giver’s lifetime.

The rule most people know is the €3,000 annual Small Gift Exemption.

The rule people often miss is that this €3,000 exemption is separate from the much larger CAT group thresholds.

For gifts taken on or after 7 October 2026, Budget 2027 increased those thresholds to:

• €420,000 — Group A
• €44,000 — Group B
• €22,000 — Group C

The CAT rate remains 33% on the taxable amount above the beneficiary’s available threshold.

This guide reflects Irish CAT rules and Budget 2027 measures checked on 7 October 2026. Tax law can change and individual family, property and business transfers can become complex, so use this as general information rather than personal tax or legal advice.

Gift tax in Ireland at a glance

What is the €3,000 Small Gift Exemption?

Revenue allows you to receive gifts worth up to €3,000 from any one person in a calendar year without paying CAT on that gift.

The exemption is particularly useful because the exempt amount:

• is not taxed;
• does not use up your Group A, B or C threshold;
• is not included in future CAT aggregation;
• can be received from more than one person in the same year.

The €3,000 limit is per giver and per recipient.

It is not a single €3,000 annual cap across every gift you receive.

Example: one parent gives one child €3,000

The full €3,000 is covered by the Small Gift Exemption.

Taxable gift for CAT aggregation: €0.

Example: two parents each give one child €3,000

Parent 1 gives €3,000.

Parent 2 gives €3,000.

Because the exemption applies separately to each giver, the child can receive €6,000 in total that year without using the Group A threshold.

Example: two parents give two children €3,000 each

Each parent can give each child €3,000.

That means:

• Parent 1 → Child 1: €3,000
• Parent 1 → Child 2: €3,000
• Parent 2 → Child 1: €3,000
• Parent 2 → Child 2: €3,000

Total transferred under the Small Gift Exemption: €12,000.

The money must genuinely be gifted to the named recipients. The exemption is not a way to relabel a larger gift to one person as if several people had received it.

Is the €3,000 exemption on top of the CAT threshold?

Yes.

This is the most important point on the page.

The Small Gift Exemption and the CAT group threshold are different allowances.

If a parent gives an adult child €30,000 in one calendar year and there are no other gifts from that parent that year:

• gift received: €30,000
• Small Gift Exemption: €3,000
• amount potentially counted for CAT: €27,000

That €27,000 can then use part of the child’s available Group A threshold.

If the child had the full new Group A threshold available, the gift would not create a CAT bill by itself, but it would reduce the threshold remaining for future taxable Group A gifts or inheritances.

What changed in Budget 2027?

Budget 2027 increased all three CAT thresholds for gifts and inheritances taken on or after 7 October 2026.

The standard CAT rate remains 33%.

The €3,000 Small Gift Exemption was not replaced by these thresholds. It continues to operate separately.

Group A, B and C: which threshold applies?

The threshold depends on the relationship between the person giving the gift — the disponer — and the person receiving it — the beneficiary.

Group A — €420,000

The most common Group A situation is a parent giving to a child.

Revenue’s definition of child also includes adopted children and stepchildren. Other less common situations can qualify for Group A, so check the detailed relationship rules where the family structure is unusual.

Group B — €44,000

Group B commonly includes gifts between:

• brothers and sisters;
• aunts/uncles and nieces/nephews in the qualifying direction;
• grandparents and grandchildren in many cases;
• parents receiving certain gifts from children.

Group C — €22,000

Group C applies where the relationship is not covered by Group A or B.

It commonly catches gifts between:

• friends;
• cousins;
• many in-laws;
• unrelated people.

Gifts between spouses and civil partners

Gifts between spouses and civil partners are generally exempt from CAT.

That is different from unmarried cohabitants.

Living together for a long period does not by itself create the spouse/civil-partner CAT exemption.

How gift tax is calculated

A simplified CAT calculation works like this:

1. determine the value of the gift;
2. deduct the Small Gift Exemption where available;
3. identify the correct CAT relationship group;
4. add relevant earlier taxable gifts and inheritances in that same group since 5 December 1991;
5. work out how much group threshold remains;
6. apply CAT at 33% to the taxable amount above the remaining threshold.

The important word is remaining.

You do not get a fresh €420,000 Group A threshold every time a parent gives you money.

Worked example: parent gives child €100,000

Assume:

• the child has received no earlier taxable Group A benefits;
• the parent has made no other gift to that child this year;
• no other exemption or relief applies.

Gift: €100,000

Less Small Gift Exemption: €3,000

Taxable amount for CAT purposes: €97,000

Available Group A threshold: €420,000

Immediate CAT: €0

Remaining Group A threshold after the gift: €323,000.

The gift is not “taxed” today, but it matters for future gifts and inheritances.

Worked example: parent gives child €500,000

Assume the full Group A threshold is initially available and no special relief applies.

Gift: €500,000

Less Small Gift Exemption: €3,000

Taxable value: €497,000

Group A threshold: €420,000

Taxable excess: €77,000

CAT at 33%: €25,410.

Worked example: child already received €300,000

Suppose a child previously received €300,000 of taxable Group A benefits and now receives another €150,000 cash gift from a parent.

Assume €3,000 of Small Gift Exemption remains available from that parent for the year.

Current gift: €150,000

Less Small Gift Exemption: €3,000

Current taxable value: €147,000

Group A threshold: €420,000

Previously used: €300,000

Threshold remaining: €120,000

Taxable excess from current gift: €27,000

Estimated CAT: €8,910.

This is why family gifting should be tracked over time rather than looked at one transfer at a time.

Can parents gift money to a child for a house deposit?

Yes, but the tax treatment still matters.

Revenue specifically states that a gift of a house deposit to a child in excess of the €3,000 annual Small Gift Exemption is within the scope of CAT.

A house deposit is not automatically exempt because the purpose is buying a home.

Example: parents gift €50,000 for a deposit

If one parent gives the entire €50,000 and the €3,000 annual exemption is available:

• €3,000 is exempt;
• €47,000 is a taxable Group A benefit;
• that €47,000 uses part of the child’s Group A threshold.

If two parents each genuinely give €25,000 in the same calendar year and each €3,000 exemption is available:

• €6,000 is covered by the two Small Gift Exemptions;
• €44,000 is potentially counted under Group A.

No CAT would arise if the child still had enough Group A threshold available, but the taxable portion remains relevant to future aggregation.

Mortgage lenders may also ask for documentation confirming that deposit money is a genuine gift rather than a repayable loan. That is a separate lending issue from CAT.

Can parents buy a house for a child tax-free?

Not simply because they are the parents.

Revenue’s guidance says the purchase of a house by a parent for a child is not treated as normal support or maintenance expenditure.

The transfer can therefore be a taxable gift, subject to the Small Gift Exemption, the child’s available Group A threshold and any specific relief that genuinely applies.

The Dwelling House Exemption is much narrower for lifetime gifts than many people assume. Revenue states that the exemption for a gift of a dwelling house is generally restricted to a qualifying dependent relative who satisfies the detailed conditions.

Do not assume that gifting an ordinary home to an adult child is automatically exempt.

What if a parent lets a child live in a house rent-free?

Free use of an asset can itself be a gift.

Revenue lists the free use of property as a type of benefit that can fall within CAT.

Its guidance gives an example of a parent allowing an adult child to use a house rent-free, with the value of the annual benefit based on rental value, subject to the annual Small Gift Exemption.

This is a more technical area because valuation and the exact legal arrangement matter.

If a high-value property is being made available indefinitely for free or below market rent, professional advice is sensible.

Are interest-free loans gifts?

Revenue includes interest-free loans among benefits that can fall within CAT.

The taxable benefit is not automatically the full principal of every loan. The tax issue can arise from the free use of the money or other value transferred.

Family loans should therefore be documented properly.

If money is genuinely expected to be repaid, keep evidence of:

• the amount advanced;
• the repayment terms;
• actual repayments;
• whether interest is charged;
• any changes to the agreement.

Calling a payment a “loan” does not make it one if there is no real expectation of repayment.

Can you give €3,000 every year?

Yes.

The Small Gift Exemption operates by calendar year.

A parent can therefore give a child up to €3,000 in one calendar year and, subject to the rules continuing, another €3,000 in the next calendar year.

Two parents can each use their own exemption for the same child.

Over a long period, regular gifting can transfer meaningful amounts without using the child’s CAT threshold.

Ten-year example

If two parents each give one child €3,000 every year for ten calendar years:

€3,000 × 2 parents × 10 years = €60,000.

Under current rules, those exempt gifts do not use the child’s Group A threshold.

The benefit is even larger in families with more than one child because the exemption is per giver and per recipient.

Can grandparents use the €3,000 exemption?

Yes.

The Small Gift Exemption is not limited to parents and children.

A grandparent can give a grandchild up to €3,000 in a calendar year under the exemption.

If four grandparents each give the same grandchild €3,000 in that year, the grandchild could receive €12,000 under the Small Gift Exemption, assuming the gifts are genuinely from the four separate individuals.

Any gift above the annual exemption then needs to be considered under the relevant CAT group rules.

Grandparent-to-grandchild transfers are often Group B, although specific Group A exceptions can apply in particular circumstances.

Can you give €3,000 to a friend tax-free?

Yes.

The Small Gift Exemption applies to a gift from any person, not only relatives.

A friend can give another friend up to €3,000 in a calendar year under the exemption.

The relationship only becomes important for the larger CAT group threshold once taxable benefits exceed the annual exemption.

For unrelated people that will generally mean Group C.

What about birthday, wedding and Christmas gifts?

There is no separate unlimited exemption merely because a gift is for a birthday, wedding or Christmas.

Ordinary gifts can fall within the €3,000 annual Small Gift Exemption.

If one person’s total gifts to you in the calendar year exceed €3,000, the excess may need to be considered under CAT.

For example, if the same person gives:

• €1,000 for a birthday;
• €1,000 at Christmas;
• €5,000 as a wedding gift

in the same calendar year, the total is €7,000.

The first €3,000 can fall within the Small Gift Exemption and the remaining €4,000 may count as a taxable benefit, subject to the normal rules.

What gifts for children can be exempt as support or education?

Irish CAT law contains a separate exemption for certain support, maintenance and education payments.

Revenue says qualifying payments can be exempt where they are:

• part of the normal expenditure of the person making them;
• reasonable in relation to that person’s financial circumstances;
• and made for a qualifying child or dependant in the circumstances covered by the legislation.

For children, the exemption can apply in situations including:

• a child under 18;
• a child aged 18 to 25 in full-time education;
• a child unable to maintain themselves because of a permanent physical or mental disability.

This exemption is not a general licence to transfer large assets to adult children tax-free.

Revenue’s own guidance specifically distinguishes normal support and education from gifts such as buying a house or providing a house deposit.

Do gifts from years ago still count?

Taxable gifts can.

Revenue’s aggregation rules require relevant taxable gifts and inheritances received in the same CAT group since 5 December 1991 to be taken into account.

The €3,000 Small Gift Exemption amounts are different: properly exempt small gifts are not included in aggregation.

Keep records of significant family gifts.

A useful record should show:

• date;
• giver;
• recipient;
• gross value;
• Small Gift Exemption used;
• taxable value after the exemption;
• CAT group;
• any relief claimed;
• any IT38 filed.

Decades later, those records can make an inheritance calculation much easier.

When do you have to file an IT38?

You can have a filing obligation before you actually owe CAT.

Revenue states that an IT38 CAT return is generally required when the total taxable value of benefits reaches more than 80% of the relevant group threshold.

Using the Budget 2027 thresholds, 80% is:

That means a person can sometimes have no CAT bill but still need to file.

Certain relief claims can also trigger a filing requirement even if the 80% marker has not been crossed.

Revenue says a CAT return is not required merely to claim the €3,000 Small Gift Exemption where the filing threshold has not otherwise been reached.

When is CAT paid?

The valuation date determines the pay-and-file period.

Revenue’s current guidance says:

• valuation dates from 1 January to 31 August fall into the pay-and-file deadline of 31 October in that year;
• valuation dates from 1 September to 31 December fall into the 31 October deadline in the following year.

The date of the gift is normally the date the gift is received and determines the relevant CAT threshold and rate.

The valuation-date rules can become more technical for property and other assets, so check the current Revenue guidance for the particular transfer.

What happens if the person who gave the gift dies soon afterwards?

Revenue notes that gifts can be treated as inheritances where the disponer dies within two years of making the gift.

This can affect how the benefit is classified and should be checked carefully where a substantial lifetime gift was made shortly before death.

For the inheritance side of the system, see Inheritance Tax in Ireland 2027.

Does the person giving the money pay the gift tax?

CAT is generally a tax on the beneficiary — the person receiving the gift or inheritance.

The giver can have separate tax consequences in some transactions.

For example, gifting an asset that has risen in value can potentially involve Capital Gains Tax for the person disposing of it, while the recipient may separately have a CAT position.

That is why gifting property, shares, farms or business assets can be more complicated than gifting cash.

Use the Capital Gains Tax Calculator for a separate CGT estimate, but get professional advice before assuming one tax replaces the other.

Cash gifts versus property gifts

Cash is usually the easiest gift to value.

Property, shares, business interests and other assets need an appropriate market value.

CAT is based on the taxable value of the benefit rather than simply the amount originally paid for the asset.

For a significant non-cash gift, valuation evidence is worth keeping.

Can a gift reduce future inheritance tax?

Potentially — but only if the planning is real and the rules are followed.

Using the annual Small Gift Exemption can move assets gradually without consuming CAT thresholds.

Larger lifetime gifts, however, generally use the same relationship-based threshold that could otherwise have been available for a later inheritance.

So giving a child €200,000 today does not normally create an extra €420,000 tax-free inheritance allowance later.

It can use a significant part of the child’s Group A threshold.

The timing can still matter for family, investment, property and succession reasons, but the aggregation rule means “gift now to avoid inheritance tax later” is not automatically effective.

Gift-tax planning checklist

Before making a large gift, establish:

1. Who owns the asset now?
2. Who will genuinely receive it?
3. What is its market value?
4. How much Small Gift Exemption remains from that giver this calendar year?
5. Which CAT group applies?
6. What prior taxable benefits has the recipient already received in that group?
7. Will the recipient cross the 80% IT38 filing marker?
8. Could the giver have a CGT or other tax liability?
9. Does a genuine exemption or relief apply?
10. Should legal ownership, a loan agreement, property transfer or family arrangement be documented?

For larger transfers, tax advice before the transaction is usually more useful than tax advice after it has happened.

Common gift-tax mistakes

Thinking everyone gets only €3,000 in total each year

The exemption is €3,000 from each giver to each recipient.

Thinking €3,000 uses the lifetime threshold

Properly exempt small gifts do not use the CAT group threshold.

Treating each large gift as if a fresh threshold applies

Relevant taxable benefits in the same group are aggregated.

Assuming a house deposit is automatically tax-free

Revenue specifically treats house-deposit gifts above the Small Gift Exemption as within CAT.

Assuming buying a house for an adult child is normal maintenance

Revenue’s guidance says it is not.

Assuming unmarried partners are CAT-exempt

The spouse/civil-partner exemption does not automatically extend to ordinary cohabitants.

Forgetting a filing obligation can arise without tax

The IT38 80% rule can bite before the group threshold is fully used.

Calling money a loan when nobody expects repayment

Substance matters. Document genuine family loans and keep repayment evidence.

Frequently asked questions

How much money can I gift someone tax-free in Ireland?

Under the Small Gift Exemption, a person can receive up to €3,000 from any one giver in a calendar year without CAT and without using their CAT group threshold.

Can both parents give a child €3,000?

Yes. If each parent separately gives the child €3,000 in the calendar year, the child can receive €6,000 under the Small Gift Exemption.

Is the €3,000 gift allowance separate from the €420,000 parent-to-child threshold?

Yes. The €3,000 Small Gift Exemption is separate and exempt amounts are not aggregated against the Group A threshold.

How much can a parent gift a child tax-free?

The first €3,000 from that parent in the calendar year can fall under the Small Gift Exemption. Larger taxable gifts can then use the child’s available Group A threshold, which is €420,000 for benefits taken on or after 7 October 2026, subject to prior Group A benefits and any applicable reliefs.

Is a house deposit from parents taxable?

A house-deposit gift above the available €3,000 Small Gift Exemption is within CAT. It may not produce an immediate tax bill if the child has enough Group A threshold remaining, but the taxable amount can use part of that threshold.

Can grandparents give €3,000 tax-free?

Yes. Each grandparent can use the Small Gift Exemption for a genuine gift of up to €3,000 to the recipient in the calendar year.

Do I need to report a €3,000 gift?

Revenue says an IT38 is not required merely to claim the Small Gift Exemption. A filing obligation can arise for other reasons, including when aggregated taxable benefits exceed 80% of the relevant CAT threshold.

Is gift tax 33% in Ireland?

The current standard CAT rate is 33%, applied to the taxable amount above the recipient’s available group threshold after the relevant rules, exemptions and reliefs are considered.

Can I gift my house to my child tax-free?

Not automatically. The value can be a taxable gift under Group A, and the lifetime-gift version of the Dwelling House Exemption is restricted to qualifying dependent relatives who meet detailed conditions.

Does a gift use up inheritance-tax allowance?

A taxable gift can use part of the same CAT group threshold that later applies to an inheritance within that group. Properly exempt €3,000 Small Gift Exemption amounts do not.

Gift tax and inheritance tax are the same CAT system

Ireland does not operate completely separate lifetime “gift tax” and death “inheritance tax” threshold systems.

Both sit inside Capital Acquisitions Tax.

That is why a large gift received today can affect how much tax-free threshold remains when the recipient later inherits.

For the death-and-estate side, read Inheritance Tax in Ireland 2027.

For wills, executors and probate, continue with:

• Making a Will in Ireland
• Probate in Ireland
• Executor of a Will in Ireland

The bottom line

There are two numbers to remember.

€3,000 is the annual Small Gift Exemption from each giver to each recipient.

€420,000 / €44,000 / €22,000 are the current CAT group thresholds applying to gifts and inheritances taken on or after 7 October 2026.

The €3,000 exempt gifts do not eat into those thresholds.

Larger taxable gifts can.

That distinction is the foundation of sensible family gifting in Ireland.