CAT and CGT when selling an inherited house under its evaluated value in the EU

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alahaj

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Hi all,
I would appreciate some advice.
I am from another EU country, but I have lived in Ireland for more than 17 years, and I haven't visited my country more than four times. My mother died in 2019 (in my country of origin), and this year, I finally got the official inheritance sorted by a notary (in my country, we call such a person like this, but I wonder whether in Ireland it is an executor) I inherited half of the house with a garden that was evaluated at 13.400 € in 2019 and the whole 935 € in her personal and savings account. The above valuation was used in the legal process of getting my part of the inheritance.
  1. Am I correct in saying that if I do not reach 80% of the 335.000€ threshold, I do not need to pay Irish CAT?
  2. Do I pay any CGT on the 2.000 € I received for selling the house? If yes, what documents will I need to do so? Unfortunately, I only have the contract for the sale and my bank statement showing that I received the money.
Thank you for all your help.
 
1. Yes
2. I may be misunderstanding but if you have sold at undervalue then it is presumably to a relative? If so, the amount you received is irrelevant for tax purposes. It is the market value of what you have disposed of. You might need to clarify what has happened, in order to get better informed opinions.
 
Off-topic, but where in the EU can I buy a house for 26,800?

EDIT: I see now that it is in very bad shape.
 
Last edited:
torblednam said:
1. Yes
2. I may be misunderstanding but if you have sold at undervalue then it is presumably to a relative? If so, the amount you received is irrelevant for tax purposes. It is the market value of what you have disposed of. You might need to clarify what has happened, in order to get better informed opinions.
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Hi
Thank you for your reply.
I did not sell it to a relative. No one lived in nor cared for the house for years, and it was in terrible shape, to the extent that it was becoming dangerous to people, as it was in the middle of a village. Neither my sister (she got a smaller portion of the inheritance, so she got 1.000€) nor I could take care of it, as we both live far away from it. So we decided to sell it, even if it was under the market value, just if it was quickly. This offer was much higher than the one we got from a relative.
 
If it was sold on an open market, then that is the valuation used for Capital Gains Tax

It slooks like you sold it for less than the valuation used at the date of inheritance - if so, no tax is due
 
jpd said:
If it was sold on an open market, then that is the valuation used for Capital Gains Tax

It slooks like you sold it for less than the valuation used at the date of inheritance - if so, no tax is due
Click to expand...
Thank you. I was hoping that this was the case but I am a bit worried that Torblednam mentioned no tax when the house was sold to a relative.
 
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