Inheritance Tax

[F. Kruger]

If an individual owns property in Finland and is a resident of Ireland at the time of their death, are the beneficiaries (residents of Ireland) subject to the Inheritance Tax Laws of Finland or Ireland?

 

[Vanilla]

Both, most likely. There is probably a double taxation treaty in existance, though- check with Revenue.

 

[ClubMan]

[broken link removed] but it doesn't seem to cover Capital Acquisitions Tax (i.e. Gift/Inheritance Taxes) - just income tax and CGT.

 

[bazermc]

An Irish CAT liability will arise because the disponer and/or the beneficiaries are Irish resident. A smiliar tax may arise in Finland, as it Finnish situate property

Although the double taxtaion agreement does not mention CAT or Inheritance tax it should be covered by this para:

"This Agreement shall apply also to any identical or substantially similar taxes which are imposed by a Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws."

 

[ClubMan]

Wonder why they explicitly state income tax and CGT in the title of the agreement so?

 

[john f]

Is a son, who is inheriting the family house in which he resides, liable to pay inheritance tax? Are other financial assets also taken into account? Many Thanks .