We have to distinguish between property inherited up to 24 November 1992 (i.e. before 25 November 1992) and property inherited after this date.

If you inherited the property before 25 November 1992 the tax is equal to 7% of the transfer value. For example: If property that was inherited in 1990 is sold for €100,000, the tax = €100,000 x 7% = €7,000. This 7% tax is final. You should not declare the transfer in your income tax return; and no tax balance will be due or refundable.

If the property was inherited after 24 November 1992 the tax is 12% of the difference between the transfer value and the cost of acquisition. A deduction for brokerage fees paid is also allowed, provided these are supported by receipts. The name of the broker must be included in the contract and a copy of the receipt must be attached thereto.

Example: the value of property inherited in 1995 was €20,000. This is now going to be sold for €100,000. Brokerage fees paid, €1,000. Deduct €21,000 from €100,000 = €79,000, then multiply by 12% = €9,480.