Reviewed by the advisory team at Greenway Financial Advisors Ltd. · Dublin · Updated October 2026
The short answer
Each parent can give each child €3,000 a year completely tax-free. Anything above that counts against the child’s lifetime tax-free threshold of €420,000 (from 7 October 2026), which also has to cover what they inherit from you later. Gift tax is only paid once a child goes over that threshold, and it’s the child who pays it, at 33%.
In Ireland, gift tax and inheritance tax are the same tax: Capital Acquisitions Tax. Whether you’re helping with a house deposit, a wedding or college costs, the rules are the same. The question isn’t usually whether your child will pay tax now. It’s how much of their threshold a gift uses up, and what that means for the inheritance they receive later.
The €3,000 Small Gift Exemption
Anyone can give anyone else up to €3,000 in a calendar year without it counting for tax at all. The exemption works per giver and per person receiving:
- Two parents can give each child €6,000 a year between them.
- Grandparents can give each grandchild €3,000 each, on top of what the parents give.
- Gifts within the exemption don’t use up any of the child’s lifetime threshold.
The exemption applies to gifts only, not to inheritances. Used every year, it’s one of the simplest ways to pass on money tax-free. Ten years of gifts from both parents moves €60,000 to each child without touching their threshold.
Gifts above €3,000: the lifetime thresholds
Anything above the Small Gift Exemption counts against the child’s tax-free threshold. The thresholds below apply to gifts and inheritances taken on or after 7 October 2026.
| Group | Who receives the gift | Tax-free threshold |
| Group A | Your child, including adopted children and stepchildren | €420,000 |
| Group B | Your grandchild, brother, sister, niece or nephew | €44,000 |
| Group C | Anyone else | €22,000 |
The threshold is a lifetime total. Everything a child receives from both parents, as gifts or inheritances, since 5 December 1991 is added together. Gifts between spouses and civil partners are always exempt.
Example: helping with a house deposit
Niamh and Brian give their daughter €60,000 towards a deposit in 2027. She hasn’t received anything from them before.
- €6,000 is covered by the Small Gift Exemption (€3,000 from each parent).
- The other €54,000 counts against her €420,000 Group A threshold.
- No gift tax is due. She has €366,000 of threshold left for future gifts and her inheritance.
That €54,000 matters later. If Niamh and Brian’s estate is worth €900,000 and passes to two children, the daughter’s share will use the €366,000 she has left. Her brother has the full €420,000. A gift to one child can mean a bigger inheritance tax bill for that child later, so many parents equalise gifts or adjust their wills. We can model this for you.
Thinking about helping a child buy a home? Call 01 853 2727 and we’ll show you what it means for their threshold and your estate.
Help to Buy and your gift
If your child is buying a new home, they may also qualify for Help to Buy. Since 7 October 2026 it can give first-time buyers up to €35,000 towards a new-build home, and it runs to 31 December 2029. The home must cost no more than €500,000, and the mortgage must be at least 70% of the purchase price. Revenue’s rules don’t single out deposits from family, but check with your child’s lender what evidence of a gift they need to see.
Gifting property or shares instead of cash
Giving an asset rather than cash can mean two taxes:
- Capital Gains Tax for you. A gift is treated as a sale at market value. The rate is 31% for disposals on or after 7 October 2026, and the first €1,270 of gains each year is exempt.
- Gift tax for your child on the value above their threshold.
Where both taxes arise on the same gift, the Capital Gains Tax you pay can generally be credited against your child’s gift tax, but the credit is clawed back if they dispose of the asset within two years. A gift of a house to a child generally won’t qualify for the Dwelling House Exemption unless the child is a dependent relative, for example aged 65 or over.
When a return and payment are due
Your child has to file a gift tax return once what they have received within a group goes above 80% of the threshold. Tax and the return are due by 31 October. For a gift made between January and August, that’s 31 October the same year. For a gift made between September and December, it’s 31 October the following year.
If you die within two years of making a gift, it is treated as an inheritance instead. The tax rate stays at 33%, but some exemptions may apply differently.
Gifts that are always exempt
- Gifts between spouses and civil partners.
- Reasonable payments for the support, maintenance or education of your child, or of your spouse or civil partner.
- Money used only to pay medical expenses for someone permanently incapacitated.
- Compensation and damages, and lottery and betting winnings.
Plan your gifts and your estate together
We’ll show you how much you can give now, and what it means for your children’s inheritance later. Call 01 853 2727 or book a free initial meeting.
Related reading: inheritance tax in Ireland · Section 72 and Section 73 policies · Capital Gains Tax
General information for the 2026 tax year, using thresholds that apply to gifts and inheritances taken on or after 7 October 2026. Not personal advice. Sources: Revenue, Capital Acquisitions Tax, Help to Buy and Capital Gains Tax pages.