If you’re gifting money to family members in Ireland, a little planning can save you both a lot of tax.

While helping out with a property purchase can be a great way to support your child’s future, there are financial considerations to keep in mind if you do not want to overpay Irish Capital Acquisitions Tax (CAT).

Gifting large amounts: A quick guide to Irish family inheritance tax in 2026

CAT is a tax charge on gifts and inheritances where the value of these exceed an individual’s lifetime tax-free threshold. Anything over this amount attracts a 33% charge.

• You do not have to die to give your child inheritance monies.
• As of 2025, the tax-free threshold for gifts from parents and step-parents to a child (Group A) is €400,000 over their lifetime, rising from €335,000 in 2024.
• For less immediate relations, such as grandparents and grandchildren (Group B), the lifetime threshold is far lower – €40,000. For people who are not related (Group C), the threshold falls to €20,000.

But, if the property purchase is not happening in the immediate future, there are other ways for family members to gift to grandchildren.

Other options for gifting to family members, as of 1 January 2026

1. Using the Small Gift Exemption in Ireland

The small-gift exemption a good option for building up funds. Anyone  may receive a gift up to the value of €3,000 from any person in each calendar year without having to pay Capital Acquisitions Tax (CAT), in addition to the lifetime thresholds mentioned above.

You can receive a gift from multiple people in the same calendar year – and the first €3,000 from each person is exempt. For example, each parent, or grandparent, could give a gift to a value of €3,000 – so a couple can gift €6,000 in any year, free of CAT, and you can give to as many people as you want to.

The person making the gift does not need to be related to the recipient. There is no obligation to spend the gift in that year and they can be saved up – for example, to meet a deposit on a house in the future. Gifts which qualify for the small gifts exemption do not reduce the lifetime tax–free thresholds.

For families with significant assets and a little time on their side, putting the money away each year can make a lot of sense.

But, if the gift is not properly documented, it can cause issues down the track. Take care to ensure that if Revenue were ever to query the transfer of funds you would be compliant. Keep a clear record of any annual transfers and ensure that the account the money is going into is in the name of the person in question, in the child’s name if that is applicable.

2. Intrafamilial loans

Parental loans – the Bank of Mum and Dad, as they’re often called – are quite common in Ireland. From Revenue’s perspective, the difference between a family loan and a gift is interest.

• If you are charging interest, it is a loan.
• If no interest is being charged, it is considered a gift.

Family loans can have lower interest rate than mortgages but Revenue says the interest payable must be at least at the rate the loaner could get for a demand deposit in the banks, or the child pays tax on the interest. Detailed records are a must, and certain family loans must file a capital acquisitions tax (CAT) return each year.

Before loaning large amounts of money to family members in Ireland, it’s important to seek professional advice on your obligations and possible implications to avoid pitfalls.