Private Client Partner, John Gill and Private Client Solicitor, Maeve Lochrie provide an overview to private client law in Ireland. The chapter covers taxes, succession laws, wills, trusts and their structures.

1. Country Author: Matheson
The Legal 500
John Gill, Partner
john.gill@matheson.com
The Legal 500
Maeve Lochrie, Solicitor
maeve.lochrie@matheson.com
The Legal 500 & The In-House Lawyer
Comparative Legal Guide
Ireland: Private Client
This country-specific Q&A provides an overview
to private client law in Ireland.
It will cover taxes, succession laws, wills, trusts
and their structures.
This Q&A is part of the global guide to Private
Client. For a full list of jurisdictional Q&As visit
http://www.inhouselawyer.co.uk/private-client/
Which factors bring an individual within the scope of tax on1.
income and capital gains?
An individual’s tax residence, ordinary residence and domicile status need to be
considered when determining the extent of an individual’s exposure to Irish tax,
although income on Irish situs assets and gains on certain specified assets will always
fall within the charge to Irish tax irrespective of these factors.
Irish nationality, will not of itself bring an individual within the charge to Irish tax.
Domicile

2. Domicile is a common law concept. There are three categories of domicile – domicile of
origin, of choice, and of dependence.
A domicile of choice can be acquired by establishing residence in another country with
the settled intention of remaining there indefinitely.
Residence
An individual will be resident in Ireland if:
He / she spends 183 days or more in Ireland in any tax year; or
He / she spends 280 days in Ireland in aggregate in a tax year and in the previous
tax year, except that if his presence in Ireland in a tax year is less than 30 days,
then those 30 days are ignored both for that tax year and in the calculation of any
aggregate over a two-year period unless, at his option, he satisfies the tax
authorities that he is in Ireland with the intention and in such circumstances that
he will be resident in Ireland for the following year.
In considering the above time periods, an individual is deemed to be present in Ireland
on any day in which he is present at any time of that day.
An individual will be ordinarily resident in Ireland if he has been resident in Ireland for
each of the three preceding tax years. An individual will not cease to be ordinarily
resident in Ireland unless he has not been resident for the three preceding years.
Notwithstanding that an individual may not be resident for a particular tax year, ordinary
residence is sufficient to bring an Irish domiciled individual within the Irish charge to
capital gains tax on worldwide disposals and certain of their worldwide income.
What are the taxes and rates of tax to which an individual is2.
subject in respect of income and capital gains and, in relation to
those taxes, when does the tax year start and end, and when
must tax returns be submitted and tax paid?
The relevant taxes are income tax and capital gains tax (“CGT”).

3. The Irish tax year operates on a calendar year basis, from 1 January to 31 December.
The specific tax filing and payment deadlines depend on the nature of the tax being
paid.
The standard rate of income tax is 20%; however, for earnings of EUR 33,800 or greater,
the rate imposed is 40%. The current rate of CGT is 33%.
Self-assessment applies to all self-employed persons and persons who are receiving
income that is not chargeable to tax under PAYE (see Question 3).
By 31 October in any given year, a taxpayer must:
Pay preliminary income tax for that year;
Pay the balance of their income tax liability for the previous year;
File a tax return in respect of their income tax liability and CGT liability for the
previous year. CGT liabilities can be declared in an individual’s income tax return.
CGT must be paid on or before:
15 December in any given year for gains arising between 1 January and 30
November in that year.
31 January in any given year for gains arising between 1 December and 31
December in the prior year.
The deadline for filing both CGT and income tax returns is usually extended by
approximately two weeks where the individual files online via Revenue’s Online System
(“ROS”).
Are withholding taxes relevant to individuals and, if so, how, in3.
what circumstances and at what rates do they apply?
Pay-As-You-Earn (“PAYE”) – Employed persons are subject to a form of withholding tax
called PAYE in respect of their employment income, such that income tax is deducted at
source.

4. Dividend Withholding Tax (“DWT”) - DWT applies at a rate of 20% on the payment of
certain dividends. An exemption from DWT may be available where the recipient
individual is resident in a jurisdiction with which Ireland has a DTA or in another EU
Member State.
Deposit Interest Retention Tax (“DIRT”) – DIRT at a rate of 39% is deducted at source by
deposit takers from interest paid or credited on deposits. A non-Irish resident can receive
Irish deposit interest free from DIRT.
A buyer must withhold CGT when paying consideration in excess of EUR 1 million to a
seller in relation to the sale of certain assets, mainly Irish immoveable property, and pay
the withheld amount to the Revenue Commissioners.
Is there a wealth tax and, if so, which factors bring an individual4.
within the scope of that tax, at what rate or rates is it charged,
and when must tax returns be submitted and tax paid?
There is no wealth tax in Ireland.
However, Irish-domiciled individuals who, in any given year, earn worldwide income in
excess of €1m, own Irish property valued at greater than €5m, and have a liability to
Irish income tax of less than €200,000, will be subject to a levy of €200,000 in respect of
that tax year. This is referred to as the ‘domicile levy’.
The domicile levy is due on / before 31 October in the year after it arises. Individuals are
permitted to offset the amount of income tax payable in the same year against the
domicile levy.
Is tax charged on death or on gifts by individuals and, if so,5.
which factors cause the tax to apply, when must a tax return be
submitted, and at what rate, by whom and when must the tax
be paid?
Yes, Capital Acquisitions Tax (“CAT”) is charged on the receipt of gifts and inheritances.

5. The charge to CAT is governed by the Capital Acquisitions Tax Consolidation Act 2003
(“CATCA”)
A charge to CAT will generally arise where:
The donor / disponer is resident in Ireland at the date of the gift / inheritance;
The recipient is resident in Ireland at the date of the gift / inheritance;
The property comprised in the gift / inheritance is Irish situate property.
The recipient of a gift / inheritance will be subject to CAT where the value of the gift /
inheritance exceeds the applicable CAT-free threshold amount.
The deadline for payment of CAT and filing returns will depend on the valuation date.
The valuation date is also relevant when considering whether the recipient can avail of
certain exemptions / reliefs from CAT.
The valuation date of a taxable gift is the date of a gift. The valuation date of an
inheritance will vary depending on the nature of the assets comprised in the inheritance
and the length of time it takes to administer the deceased’s estate.
An individual who is domiciled outside Ireland will not be resident or ordinarily resident
for these purposes unless he has been resident in Ireland for the preceding five years.
Payment of CAT is made by way of self-assessment. Where 80 per cent of the class
threshold which is appropriate to a benefit has been exceeded, the person who is
primarily accountable for paying the CAT is obliged to deliver a return and pay the tax
due.
Where the valuation date falls within the period 1 September to 31 August the following
year, the filing and payment date is 31 October of the following year.
Are tax reliefs available on gifts (either during the donor’s6.
lifetime or on death) to a spouse, civil partner, or to any other
relation, or of particular kinds of assets (eg business or

6. agricultural assets), and how do any such reliefs apply?
Yes, there are prescribed reliefs that apply to lifetime gifts and to inheritances on death.
Transfers between spouses / civil partners
Transfers between spouses / civil partners are exempt from both gift tax and inheritance
tax, CGT (unless the recipient spouse is outside the CGT charge in the year of the gift),
and stamp duty.
Business Relief
Business relief is available in respect of business assets and unquoted shares in trading
companies or holding companies.
The effect of the relief is that the taxable value of the business assets is reduced by
90%.
The relief is subject to certain restrictions, including retention periods.
Agricultural Relief
Agricultural relief is available for gifts and inheritances of ‘agricultural property’ (as
defined in CATCA) taken by a person who is, on the valuation date and after taking the
gift or the inheritance, a ‘farmer’ (as defined CATCA).
The effect of the relief is that the taxable value of the agricultural assets is reduced by
90%.
The relief is subject to certain restrictions, including retention periods.
If the recipient qualifies for both agricultural relief and business relief in respect of a gift
or inheritance, they must only choose one relief.
Do the tax laws encourage gifts (either during the donor’s7.
lifetime or on death) to a charity, public foundation or similar
entity, and how do the relevant tax rules apply?
In order for a charity to avail of tax relief on donations, the donation must, be made to
an eligible charity, being a charitable body which was granted tax exempt status for a

7. period of at least two years. The minimum donation for an individual on which tax relief
may be obtained is EUR250 to any one charitable body in the year of assessment. The
tax relief accrues to the charity at a blended rate of 31%, whereas the individual donor
does not receive any tax relief or deduction for tax purposes. In comparison, corporate
donors can avail of a full corporation tax deduction on donations to charitable bodies, as
effectively the donations are treated as a trading expense.
There is relief from CGT on the disposal of an asset to a charitable body in certain
circumstances.
How is real property situated in the jurisdiction taxed, in8.
particular where it is owned by an individual who has no
connection with the jurisdiction other than ownership of
property there?
Irish source income, for example rental income from an Irish situate property, will be
subject to income tax in Ireland on an arising basis, regardless of the tax profile of the
tax payer, and non-resident individuals will be subject to withholding tax where they do
not appoint an Irish resident agent to collect the rent and pay the tax due.
Capital gains arising on the disposal of ‘specified assets’, which are defined in Section 29
TCA 1997 as including land and buildings in Ireland, will be subject to CGT on an arising
basis.
CAT will be imposed on a gift / inheritance of Irish situate property held by the donor
personally. However, where Irish situate property is held by a non-Irish resident
company, and the shares in such company are the subject of a gift / inheritance, the
charge to CAT should not arise where the disponer of the shares is not domiciled in
Ireland.
Stamp duty is charged on instruments, specified in the First Schedule to the Stamp Duty
Consolidation Act 1999, which are executed in Ireland or, wheresoever executed, relate
to any property situate in Ireland or to any matter or thing done or to be done in Ireland.
The rate of stamp duty applicable to the sale or transfer of residential property is 1% for
the first €1,000,000 and 2% for any value over €1,000,000. The rate of stamp duty

8. applicable to the sale or transfer of commercial property is 6% following the enactment
of Finance Act 2017.
Local property tax (“LPT”) is an annual self-assessed tax on residential properties,
payable to the Revenue Commissioners. LPT is calculated based on the market value of
the property at the valuation date. Taxpayers are required to self-assess for LPT.
Are taxes other than those described above imposed on9.
individuals and, if so, how do they apply?
Pay Related Social Insurance (“PRSI”) – PRSI is Ireland’s equivalent of social insurance or
social security. The amount of PRSI paid by an individual depends on that person’s
earnings and the type of work they do.
Universal Social Charge (“USC”) – USC is payable on gross income, including notional
pay, after any relief for certain capital allowances but before pension contributions.
Currently, if an individual earns EUR 13,000 or less per annum they will not be subject to
USC.
Is there an advantageous tax regime for individuals who have10.
recently arrived in or are only partially connected with the
jurisdiction?
Yes, Irish resident non-domiciled individuals may avail of the remittance basis of taxation
in respect of their non-Irish / foreign source income and gains, subject to certain
restrictions.
This means that Irish source income, and gains arising on the disposal of assets situated
in Ireland, will generally be subject to Irish tax, but foreign source income and gains
arising on the disposal of assets situated outside Ireland will only be subject to Irish
taxation to the extent that they are remitted into Ireland, or are deemed to be remitted
into Ireland by virtue of specific anti-avoidance legislation. It should be noted that the
remittance basis has been discontinued in respect of income from an employment
exercised in Ireland with effect from 1 January 2006.

9. What steps might an individual be advised to consider before11.
establishing residence in (or becoming otherwise connected for
tax purposes with) the jurisdiction?
The key steps that an individual should take are as follows:
Segregate capital value and accumulated income and gains arising prior to the tax
year in which the individual becomes Irish tax resident. These funds should not be
mixed with income and gains arising in subsequent tax years as they will
collectively be considered as ‘clean’ capital, which the individual can remit tax-free
into Ireland.
Rebase assets which have latent capital, to get an uplift in the base cost of the
asset, provided it can be done in a tax neutral manner.
Receiving / gifting non-Irish situs assets to non-Irish resident individuals within the
initial 5 years of Irish tax residence so as to avoid an Irish CAT charge arising.
What are the main rules of succession, and what are the scope12.
and effect of any rules of forced heirship?
Testate succession occurs pursuant to the terms of the Will of a deceased person.
Intestate succession is governed by the rules contained in the Succession Act 1965, and
occurs where a deceased person either has not made a Will, or has not fully disposed of
his free estate by the terms of his will. The Succession Act 1965 sets out the division of a
deceased’s estate where they die intestate.
There is a limited form of forced heirship under Irish law. The Succession Act 1965,
provides for an absolute right of a spouse (same-sex also included since 2015) or civil
partner of a deceased person to a fixed share in the deceased’s estate. This right is often
referred to as the ‘legal right share’ and cannot be defeated by the provisions of the
deceased’s Will. The percentage share entitlement of the spouse / civil partner will
depend on whether the deceased dies with or without children.
The legal right share may be renounced in writing by a spouse after marriage or civil
partner after the civil partnership but during the lifetime of the testator.

10. A child of a deceased person has no specific entitlement to his / her estate and simply
has an entitlement to apply to court for relief, which may be granted if the court is of
opinion that the deceased failed in his / her moral duty to make proper provision for the
child in accordance with his / her means, whether by Will or otherwise.
Is there a special regime for matrimonial property or the13.
property of a civil partnership, and how does that regime affect
succession?
There is no special regime for matrimonial property or the property of a civil partnership
under Irish law.
What factors cause succession laws to apply on the death of an14.
individual?
In accordance with Irish private international law rules concerning succession law, the
devolution of the estate of a deceased person, including the question of forced heirship,
is determined as to immovables by the law of the situs of the immovables, and as to
movables, by the law of the domicile of the deceased person.
How does the jurisdiction deal with conflict between its15.
succession laws and those of another jurisdiction with which the
deceased was connected or in which the deceased owned
property?
A conflict between the succession laws of Ireland and another jurisdiction will be
determined by the principles of private international law. Ireland is not a signatory to the
EU Regulation on Succession Law which came into force on 17 August 2015. However, to
the extent that an Irish national owns property in an EU Member State other than
Ireland, they can elect for Irish succession law to apply to the succession of such
property. This will address the previous inconsistencies between the Irish private
international law rules on succession and those of the contracting Member States to the
EU Regulation on Succession Law. Where an individual is habitually resident in Ireland,
Ireland can still renvoi the matter of succession law to the Member State in which the
deceased was domiciled and, pursuant to the said Regulation, the Member State can

11. accept the renvoi. Renvoi is expressly excluded in the case of a validly elected law of
nationality.
In what circumstances should an individual make a Will, what16.
are the consequences of dying without having made a Will, and
what are the formal requirements for making a Will?
An individual should make a Will in all circumstances. As noted in Question 12, where an
individual has not made a Will, the rules of intestacy would apply and the division of the
individual’s estate would be determined in accordance with the Succession Act 1965.
A Will must be in writing, signed by the testator, and witnessed by two independent
witnesses in the presence of the testator, in order for it to be valid. A foreign Will shall be
valid if it meets any of the requirements of the Hague Convention on Testamentary
Dispositions 1961.
How is the estate of a deceased individual administered and17.
who is responsible for collecting in assets, paying debts, and
distributing to beneficiaries?
The administration of an estate depends upon whether the deceased died testate or
intestate.
Where he / she died testate, the executors appointed under the Will are responsible for
applying to the Probate Office to extract a Grant of Probate, which confirms the validity
of the Will and the authority of the executors to deal with the estate. Once the Grant of
Probate has issued, the executors are responsible for collecting in the assets of the
deceased’s estate, paying the just debts and expenses of the estate, and distributing the
assets in accordance with the Will.
Where the deceased’s spouse has been left less than his or her legal right share under
the terms of the will, it is the executor’s duty to notify that spouse of his or her right of
election as to whether to take under the will, or claim the legal right share.
Where a person dies intestate, the person or persons entitled to the estate pursuant to

12. the rules of intestacy, or any one of a number of equally entitled, may apply to the High
Court for letters of administration, authorising that person or those persons to administer
the estate according to the rules of intestacy.
Where the personal representatives are not resident in Ireland, or some of the
beneficiaries are not Irish resident, they are required to appoint an Irish solicitor as their
agent to obtain a Grant of Representation.
Do the laws allow individuals to create trusts, private18.
foundations, family companies, family partnerships or similar
structures to hold, administer and regulate succession to
private family wealth and, if so, which structures are most
commonly or advantageously used?
Yes, the laws of Ireland allow individuals to create trusts, family companies and family
partnerships. Private foundations cannot be established in Ireland.
A private limited liability company is usually used where the individual wishes to avail of
separate legal personality and limited liability. However, trusts and partnerships are the
most commonly used structures to protect wealth and assets for beneficiaries while
incorporating tax and estate planning.
How is any such structure constituted, what are the main rules19.
that govern it, is there any requirement for registration with or
disclosure to any authority or regulator, and what information
about the structure is available to the public?
All three structures referred to above are governed firstly by common law and secondly
by specific statutory enactments.
The private limited company is constituted by the subscription of the shareholders to a
constitution (formerly a memorandum and articles of association). The constitution must
be filed, together with a Form A1, with the Companies Registration Office in Ireland in
order for the company to be validly incorporated. A copy of the constitution will be

13. available to members of the public. Following implementation of certain aspects of
Article 30 of the Fourth Anti-Money Laundering Directive (EU 2015/ 849), by virtue of the
European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities)
Regulations 2016 which came into operation on 15 November 2016, all companies must
keep a register of beneficial ownership. In due course, companies will be required to file
this information with a central beneficial ownership register.
A trust will normally be established either by an express deed or declaration of trust, or
under the will of a testator. For a trust to be valid, there must exist three certainties:
certainty of intention, certainty of subject matter and certainty of objects. With regard to
a class of discretionary objects, it is necessary that it can be ascertained whether a
particular person is or is not a beneficiary at any given time. There is no governmental
registration requirement. There is no central register of beneficial ownership or interests.
A partnership will normally be formed by written agreement executed by the partners,
and usually under seal, but a partnership can come into existence by oral agreement or
indeed by the conduct of the parties. A limited partnership must be registered with the
CRO.
How are such structures and their settlors, founders, trustees,20.
directors and beneficiaries treated for tax purposes?
In high level terms, a private limited company will be subject to corporation tax at a rate
of 12.5% on profits. Directors of the company will be subject to income tax, USC and
PRSI on their salary (which taxes will be paid via the PAYE system). Shareholders, who
receive dividends from the company may be subject to DWT.
In relation to Irish resident trusts, settlors will usually only suffer a tax charge in respect
of bare trusts settled for the benefit of minor children. As noted in Question 22, settlors
will be subject to tax in respect of offshore trusts under the Irish anti-tax avoidance
legislation. Trustees will usually be subject to income tax and CGT in respect of the
income and gains arising within the trust, unless the trust is a bare trust. The applicable
rate of income tax for Irish resident trustees is 20%. Trustees will also be subject to
discretionary trust tax in the case of discretionary trusts. Beneficiaries will be subject to
CAT on capital appointments from the trust, and will be subject to income tax on income
benefits received. Where the capital value received includes accumulated income, they

14. will be subject to income tax in the first instance and CAT on the net benefit received.
A limited partnership will be treated as transparent for tax purposes, and the partners
will be subject to income tax and capital gains tax on the profits and gains arising within
the partnership in proportion to their interest in the partnership.
Are foreign trusts, private foundations, etc recognised?21.
Foundations are not recognised by Irish law. If a foundation was established outside of
Ireland, the relevant law of the civil law jurisdiction where the foundation was
established would need to be examined.
Foreign trusts are accepted in Ireland, provided that they comply with certain formalities
and contain the essential elements of a trust recognised in Ireland. Real property in trust
must be evidenced in writing, signed by a person able to declare the trust. As referred to
in Question 19, the three certainties must exist for the trust to be valid.
How are such foreign structures and their settlors, founders,22.
trustees, directors and beneficiaries treated for tax purposes?
There are specific anti-avoidance provisions of Irish tax law which operate to tax the
gains and / or income of non-Irish resident companies and trusts to Irish resident
participators, settlors and / or beneficiaries as the case may be.
Finance Bill 2017 proposes significant changes to Irish tax anti-avoidance legislation for
offshore structures. Going forward, the motive for establishing a trust or disposing of an
asset are irrelevant, and the anti-avoidance provisions will only be disapplied where it
can be shown that the offshore trust or company is carrying on ‘genuine economic
activity’ within the EU / EEA. This is quite a significant restriction. The relieving
provisions no longer apply to income or capital gains arising within structures located
outside the EU / EEA. Indeed, it could potentially have ramifications for structures
established in the United Kingdom post-Brexit.
To what extent can trusts, private foundations, etc be used to23.

15. shelter assets from the creditors of a settlor or beneficiary of
the structure?
As noted above at Questions 18 and 21, foundations are not recognised by Irish law and
cannot be established in Ireland.
Under the Land and Conveyancing Law Reform Act 2009, an individual cannot enter into
a transaction with the intent to defraud creditors / third parties, either existing of
potential, by taking certain assets outside of the reach of such parties. Provided such an
intention does not exist trusts can be used to shelter assets from the creditors of a
settlor or beneficiary. However, certain provisions of Irish legislation, including the
Bankruptcy Act 1988, the Succession Act 1965 and the Family Law Acts 1995, operate to
set-aside certain transaction in the event of bankruptcy, death or divorce.
What provision can be made to hold and manage assets for24.
minor children and grandchildren?
Assets could be held in a bare trust or a discretionary trust for the benefit of minor
children of the settlor or minor children of a pre-deceased child of the settlor. A
discretionary trust will defer a CAT charge from arising and CAT will only become due
when assets are appointed out of trust to the beneficiaries.
Where such children are under 21 years of age, the DTT levies do not arise and
therefore, a charge to tax will not arise provided all of the assets comprised in the trust
are appointed out to the beneficiaries prior to the youngest beneficiary becoming 21
years of age.
Are individuals advised to create documents or take other steps25.
in view of their possible mental incapacity and, if so, what are
the main features of the advisable arrangements?
Individuals are advised to make an enduring power of attorney, in which give one or
more persons authority to make personal care decisions and financial decisions on their
behalf in the event that they lose capacity.

16. Following the commencement of the Assisted Decision-Making (Capacity) Act 2015
individuals will also be able to enter into various types of assisted decision making
agreements depending on their level of capacity, and will also be permitted to enter into
advanced healthcare directives which will allow them to outline their wishes and
preference concerning healthcare treatment in the event that they lose capacity.
What forms of charitable trust, charitable company, or26.
philanthropic foundation are commonly established by
individuals, and how is this done?
Charitable bodies are regulated pursuant to the Charities Act 2009, by the Charities
Regulatory Authority.
The most common forms of charitable structures are:
Companies Limited by Guarantee (“CLG”), which are established by a constitution
and incorporated in the Companies Registration Office like other private
companies as referred at Question 19 above. CLGs are the most popular form of
charitable bodies.
Charitable Trusts, which are established by deed of trust.
Unincorporated Bodies, which are also established by a constitution. However,
unlike CLGs, these type of charitable bodies do not have limited liability and do not
have a separate legal personality to their members.
What important legislative changes do you anticipate so far as27.
they affect your advice to private clients?
Irish tax advice to private clients is subject to change following the publication of the
annual Finance Bill in October of each year and the subsequent enactment of the annual
Finance Act shortly thereafter.
The question of whether a central register of beneficial ownership for trusts will be
established is also going to be very relevant.