U.S.-Ireland Cross Border Inheritance Tax Guide
Last updated: 30 Sep 2025
United States × Ireland: Inheritance & Gift Tax
The US and Ireland have a bilateral estate tax treaty that coordinates US federal estate tax and Irish Capital Acquisitions Tax (CAT) on inheritances. The treaty does not cover gift tax, and it does not apply to any US state death duties. Treaty rules use a “situs code” to allocate taxing rights asset-by-asset and provide for credit relief to mitigate double taxation.
Irish Revenue confirms the US–Ireland convention covers inheritance (US federal estate tax ↔ Irish CAT) but excludes gift tax and any US state death duties.
At a glance
What the treaty covers
- US federal estate tax ↔ Irish CAT (inheritance).
- Provides asset-by-asset situs rules and credit relief to mitigate double tax.
- Not covered: US gift tax and any US state estate/inheritance taxes.
Why it matters
- Common corridors (US assets, Irish heirs; Irish assets, US decedents).
- Correct situs classification and documentation drive credit capacity.
Irish CAT: rate & thresholds
Irish CAT applies to gifts and inheritances above lifetime thresholds, then at a standard rate of 33%.
As of 2 Oct 2024 the tax-free thresholds are: Group A €400,000 (children/parents in limited cases),
Group B €40,000 (siblings/nieces/nephews/lineal ancestors/descendants), and Group C €20,000 (others).
Check current thresholds on Irish Revenue before filing.
| CAT Group | Relationship | Threshold (since 2 Oct 2024) | CAT rate |
|---|---|---|---|
| Group A | Child (incl. adopted/step/certain foster); parent in limited cases | €400,000 | 33% |
| Group B | Sibling, niece/nephew, lineal ancestor/descendant | €40,000 | 33% |
| Group C | All other beneficiaries | €20,000 | 33% |
Source: Irish Revenue — CAT overview and thresholds (updated Sept 2025).
Treaty mechanics (situs & credits)
- Inheritance only: The convention coordinates **inheritances** (US federal estate tax ↔ Irish CAT). It does not apply to gifts and does not bind US states. :contentReference[oaicite:0]{index=0}
- Credit relief: Where the same asset is taxed on both sides, Ireland grants a CAT credit up to the lower of the two effective rates, capped at Irish tax due. :contentReference[oaicite:1]{index=1}
- Foreign-situate property rule: Under the convention, Ireland cannot tax foreign-situate property unless the disponer died domiciled in Ireland or not domiciled in the US. :contentReference[oaicite:2]{index=2}
- US side: IRS confirms estate/gift treaties allocate primary/secondary taxing rights, situs, and credit rules (check the US position when filing Form 706/706-NA). :contentReference[oaicite:3]{index=3}
Treaty “situs code” — quick table
| Asset class | Typical situs under the convention | Notes |
|---|---|---|
| Immovable property (real estate) | Where located | Local country has primary right. |
| Tangible movables | Physical location at death/transfer | Evidence of location matters. |
| Debts / bank deposits | Domicile of the decedent | Per Revenue’s summary table. |
| Shares/stock | Place of incorporation | US corp → US situs; Irish LTD/PLC → Ireland. |
| Insurance policies | Domicile of the decedent | Check policy specifics. |
| Ships/aircraft | Place of registration | — |
| Business goodwill | Where business carried on | Fact-dependent. |
| Patents/trademarks/designs | Place of registration | — |
Abbreviated from Irish Revenue’s “Double Taxation Relief (US)” page — see full table there.
Worked example (illustrative)
- Decedent: US-domiciled, dies with US assets and an Irish bank account.
- Heir: Child resident in Ireland (Group A threshold applies).
- Assets:
- US-situs listed shares: $2,000,000
- Irish bank deposit: €300,000
- Assumptions (illustrative only): Ignore debts/reliefs other than CAT Group A €400k; EUR/USD parity for simplicity; CAT rate 33%.
Irish deposit €300k is Irish-situs. US shares are US-situs; treaty allows CAT credit for US estate tax on those shares.
Net effect: CAT chiefly remains on the Irish-situs deposit (no foreign tax there), while CAT on the US shares is reduced by the treaty credit.
This is a simplified illustration (rounded; ignores spouse/charity/business reliefs, debts, FX, valuations). Actual results depend on facts and filings (US Form 706/706-NA; Irish IT38).
Planning checklist (no legal/tax advice)
- Map assets by situs (US vs. IE) and type (real, securities, cash, business, IP).
- Quantify credits under the treaty for the same asset; maintain US assessment and payment proofs.
- CAT thresholds: apply correct Group A/B/C; aggregate prior gifts since 5 Dec 1991.
- State exposure: treaty does not bind US states — check any state inheritance/estate regimes separately.
- Sequence lifetime gifts vs. bequests; remember the treaty does not cover gift tax.
FAQ
Is there a US–Ireland inheritance/estate tax treaty?
Yes. The convention coordinates US federal estate tax and Irish CAT on inheritances and provides situs and credit rules. It does not cover gift tax or any US state death duties.
What are the current Irish CAT thresholds and rate?
Since 2 Oct 2024: Group A €400,000; Group B €40,000; Group C €20,000. Standard CAT rate 33% on amounts above the applicable threshold.
Does the treaty eliminate double tax completely?
It allocates taxing rights and allows credits for the same asset, but documentation (valuations, situs evidence, assessments, proof of payment) is essential, and some items (e.g., gifts, US state taxes) remain outside the treaty.
Talk to us
We model US × Ireland exposures, compute treaty credits, and prepare synchronized filings (US 706/706-NA; Irish IT38).