Selling an Inherited Property: CGT, CAT, and the Double-Tax Trap
If you inherit a property and sell it for more than it was worth at the date of death, you may owe Capital Gains Tax (CGT) at 33% on the increase — on top of any CAT you already paid on the inheritance itself. Here’s how the interaction works and how to avoid paying double.
How CGT Works on Inherited Property
When you inherit property, your “base cost” for CGT purposes is the market value at the date of death (the probate value). If you sell for more than this, you owe CGT at 33% on the gain. If you sell for less, you have a capital loss (which can offset other gains).
Inheritance Action Plan
Step-by-step guide to inheriting property in Ireland. CAT calculations, exemptions, probate timeline, and checklists.
Example: CAT + CGT
| Step | Amount |
|---|---|
| Property value at inheritance (probate value) | €400,000 |
| CAT paid (value above Group A threshold) | €0 (within €400k threshold) |
| Sale price 3 years later | €460,000 |
| CGT gain (€460k − €400k) | €60,000 |
| CGT @ 33% (after €1,270 annual exemption) | €19,381 |
The 4-Year CAT Credit
If you paid CAT on the inheritance and sell within 4 years, you can claim a credit for the CAT paid against your CGT liability. This prevents genuine double taxation. After 4 years, the credit expires and both taxes apply independently.
BER for Selling
Before listing an inherited property for sale, you’ll need a valid BER certificate. This is legally required for all property advertisements. Book your BER at Homerating.ie
Stamp duty for the buyer: Stamp Duty Calculator