Receiving gift from relative who lives in Australia

G

Gracemark

New Member
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3
Hi
My sister who is an Australian resident for approx 40 wants to gift me and each of my children approx 50k (euro) each.This would be the sale proceeds of a property she owns outright in her own name here in Ireland.
Can you please tell me if my we have to pay gift tax on this money as she will be transferring it from her Australian bank account
Many Thanks
 
The source of the gift (i.e. Australia / bank account) is not relevant.

The amount of the gift received is relevant.

The relationship between the donor and the beneficiary is relevant.

Please study the group thresholds.
 
In brief, anything a nephew or niece receives from an uncle, aunt, grandparent is in category B
The cumulative lifetime tax-free threshold is € 40,000 - anything over that is taxed at 33%
 
Don't forget the small gift exemption per calendar year. So if your aunt gives you each all EUR 3k in 2024 and EUR 3k in 2025, then the remainder of the EUR 44k is the relevant gift for CAT. If they have a spouse who would be part owner of the initial cash proceeds, the spouse can do the same, leaving only EUR 41k for CAT. So if you all have intact thresholds, then tax would only be 33% of 1k.
 
There may be tax implications for your sister in Australia as well?
If so, professional help in how to structure the various transactions could be well advised.
 
charlie007 said:
Does Australia not have some kind of CGT which the sister might be liable for?
Click to expand...
Ah, ok. I thought that the gift was from cash/savings but see now what it's from the proceeds of the sale of a property so CGT or the Australian equivalent may well be an issue alright...
 
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