{"id":683,"date":"2026-06-10T11:18:30","date_gmt":"2026-06-10T11:18:30","guid":{"rendered":"https:\/\/gotofinance.ie\/?p=683"},"modified":"2026-06-10T11:18:34","modified_gmt":"2026-06-10T11:18:34","slug":"how-much-can-i-gift-my-child-tax-free-in-ireland","status":"publish","type":"post","link":"https:\/\/gotofinance.ie\/?p=683","title":{"rendered":"How Much Can I Gift My Child Tax-Free in Ireland?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">One of the most common questions I get from parents and grandparents is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>&#8220;What&#8217;s the best way to put money aside for my children without creating a tax problem later?&#8221;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s a great question.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most people know that Ireland has Capital Acquisitions Tax (CAT), often referred to as inheritance or gift tax. What many don&#8217;t realise is that there is a simple relief that allows you to gradually transfer wealth to your children completely tax-free.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Used correctly, it can help fund:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Third-level education<\/li>\n\n\n\n<li>A house deposit<\/li>\n\n\n\n<li>A wedding<\/li>\n\n\n\n<li>A financial safety net<\/li>\n\n\n\n<li>A head start in life<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">And the best part?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You don&#8217;t need to wait until you&#8217;re gone to do it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Small Gift Exemption Ireland<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under current Irish tax rules, every individual can gift up to <strong>\u20ac3,000 per year<\/strong> to another person without affecting their CAT thresholds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is known as the <strong>Small Gift Exemption<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption applies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Per donor<\/li>\n\n\n\n<li>Per recipient<\/li>\n\n\n\n<li>Per calendar year<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This means a married couple could gift:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20ac3,000 from Mum<\/li>\n\n\n\n<li>\u20ac3,000 from Dad<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To the same child every year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s <strong>\u20ac6,000 per year tax-free<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over 18 years, that&#8217;s:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u20ac108,000 transferred completely outside of the CAT system before any investment growth is taken into account.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How To Avoid CAT For Children<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many people search for ways to avoid CAT for children.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The reality is that there is no magic loophole.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, there are legitimate planning opportunities available.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Small Gift Exemption is one of the simplest and most effective because:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is specifically provided for in tax legislation<\/li>\n\n\n\n<li>It requires no complex structures<\/li>\n\n\n\n<li>It reduces the future value of your estate<\/li>\n\n\n\n<li>It gradually transfers wealth to the next generation<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For families who start early, the impact can be significant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Most Families Miss This Opportunity<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many parents intend to help their children financially but never put a plan in place.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The typical approach is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>&#8220;We&#8217;ll leave them something in our Will.&#8221;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While that may ultimately happen, it misses one major advantage:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Time.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A child who receives money at age 25 has missed decades of potential investment growth compared to a child who begins building wealth from birth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Starting early allows compound growth to do much of the heavy lifting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Savings For Children Ireland: A Better Approach<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many parents simply open a bank account and transfer money into it every month.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While this feels safe, cash savings often struggle to keep pace with inflation over long periods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For goals that are 10, 15 or 20 years away, many families choose to invest rather than simply save.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is where a Bare Trust can become useful.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is A Bare Trust?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Bare Trust is one of the most common structures used for children&#8217;s investments in Ireland.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The child is the beneficial owner of the assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The trustees manage the investment until the child reaches adulthood.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bare Trusts are frequently used for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Children&#8217;s education funds<\/li>\n\n\n\n<li>House deposit savings<\/li>\n\n\n\n<li>Long-term family wealth planning<\/li>\n\n\n\n<li>Investing annual Small Gift Exemption contributions<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In simple terms, it allows money to be invested for a child while an adult remains responsible for managing it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bare Trust Ireland Example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s assume parents invest:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u20ac250 per month<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For 18 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Assuming a growth rate of 5% per annum, the fund could grow to approximately:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u20ac85,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By age 18.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Increase the contribution to \u20ac500 per month and the figures become substantially larger.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This demonstrates why starting early often matters more than trying to contribute large amounts later.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Important: Bare Trust Registration<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Since the introduction of anti-money laundering legislation, most Bare Trusts must be registered with Revenue&#8217;s Central Register of Beneficial Ownership of Trusts (CRBOT).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many families are unaware of this requirement until after the trust has been established.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To help with this process, I&#8217;ve created a<a href=\"https:\/\/gotofinance.ie\/wp-content\/uploads\/2026\/06\/How-to-Register-a-Trust-with-CRBOT.pdf\"> step-by-step guide showing how to register a Bare Trust with Revenue&#8217;s CRBOT system.<\/a> The guide walks through the Revenue MyAccount process and explains the information required at each stage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some families choose to complete the registration themselves, while others prefer professional assistance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">My Take<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">I like this strategy because it combines three powerful concepts:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tax efficiency<\/li>\n\n\n\n<li>Long-term investing<\/li>\n\n\n\n<li>Helping family while you&#8217;re still around to see the benefit<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Too often, inheritance planning is viewed as something that happens after death.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Small Gift Exemption allows families to start that process today.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Bottom Line<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re wondering:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How much can I gift my child tax-free in Ireland?<\/li>\n\n\n\n<li>What is the Small Gift Exemption?<\/li>\n\n\n\n<li>How can I save for my child&#8217;s future?<\/li>\n\n\n\n<li>Should I use a Bare Trust?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Then it&#8217;s worth getting advice before putting a plan in place.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A relatively small amount invested consistently over time can make a meaningful difference to a child&#8217;s future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And thanks to the Small Gift Exemption, it can often be done in a highly tax-efficient manner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the most common questions I get from parents and grandparents is: &#8220;What&#8217;s the best way to put money aside for my children without creating a tax problem later?&#8221; It&#8217;s a great question. Most people know that Ireland has Capital Acquisitions Tax (CAT), often referred to as inheritance or gift tax. What many don&#8217;t [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":684,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_convertkit_post_meta":{"form":"-1","landing_page":"0","tag":"0","restrict_content":"0"},"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[10,19],"tags":[12],"class_list":["post-683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-planning","category-tax-planning","tag-protecting-family-future"],"_links":{"self":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts\/683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=683"}],"version-history":[{"count":1,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts\/683\/revisions"}],"predecessor-version":[{"id":685,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts\/683\/revisions\/685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/media\/684"}],"wp:attachment":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}