With house prices skyrocketing, it’s no wonder so many parents are wondering how their kids will ever afford a place of their own. These days, buying a home is more challenging than ever for young people. Saving for a deposit while paying high rent can feel like climbing a mountain in flip-flops.
However, there are some smart, tax-friendly ways you can step in and give them a real head start, making that first step onto the property ladder a lot less daunting.
Here are three of the most popular options in Ireland.
Make a Tax-Free Gift
If you want to give your child a straightforward boost towards buying their first home, a tax-free gift is one of the simplest ways to do it.
In Ireland, parents can gift their child up to €3,000 each per year under the Small Gift Exemption, completely tax-free. That means a couple could give their child €6,000 in one year without triggering any tax bill or using up any of the bigger lifetime inheritance threshold.
Over time, this can add up to a serious contribution. For example, giving €6,000 a year for five years would mean your child receives €30,000, enough to make a real dent in a house deposit.
This annual gift is separate from the Group A lifetime tax-free threshold of €400,000 (as of 2025) that applies to gifts and inheritances from parents to children combined. That means you can help now without eating into the amount they can inherit tax-free in the future.
Why it works so well:
- Immediate impact – your child can use the money right away for their deposit or other costs.
- No paperwork – if you stay within the €3,000 per parent per year limit.
- Flexible – you decide when and how much to give each year.
If you gift above the annual exemption or lifetime threshold, the excess will be subject to Capital Acquisitions Tax (CAT) at a rate of 33%.
Example 1:
If both parents each contribute €3,000 per year, that’s a total of €6,000, with no tax, no paperwork, and no impact on the lifetime threshold. Over five years, that’s €30,000 towards a deposit, just from small gifts.
Example 2:
If you want to help your daughter and her husband with their house deposit, you can take advantage of the Small Gift Exemption. This allows you to gift up to €3,000 per person, per year, completely tax-free. That means you and your spouse could each give €3,000 to your daughter and €3,000 to her husband. In total, that’s €12,000 in one year — without affecting your lifetime inheritance tax thresholds or triggering any tax bill.
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