Transferring a Site from Parent to Child in Ireland: What Are the Tax Implications?

In Ireland, it’s quite common for parents to gift or transfer a site to their child for the purpose of building a home. While it’s a generous and practical gesture, it’s important to understand the tax implications involved in the process to avoid any surprises down the line.

At Eoin O’Gorman Solicitors, we’ve guided many families through site transfers and can help ensure everything is handled smoothly from both a legal and tax perspective.

What Is a Site Transfer?

A site transfer usually refers to a parent transferring a portion of their land (often farmland or part of their property) to a child, usually as a gift, to allow the child to build their principal private residence.

This type of transfer is treated as a gift under Irish tax law, which means Capital Acquisitions Tax (CAT) and Stamp Duty need to be considered carefully.

1. Capital Acquisitions Tax (Gift Tax)

Capital Acquisitions Tax (CAT) applies when someone receives a gift or inheritance. However, there is a Group A threshold that allows a child to receive gifts up to a certain value from their parents tax-free.

As of 2025, the Group A threshold is €400,000 (subject to change). This means a child can receive cumulative gifts or inheritances up to this amount from both parents without paying any CAT.

If the site’s market value is under this threshold and the child hasn’t previously received large gifts or inheritances from their parents, no CAT is payable.

🔎 Tip: A professional valuation is essential to determine the market value of the site.

2. Stamp Duty

When transferring land in Ireland, Stamp Duty generally applies. For residential site transfers, the rate is typically 7.5% (for non-residential land), but there are important reliefs available.

If the site is transferred to a child who is going to build their principal private residence, they may qualify for Stamp Duty Relief, reducing the liability significantly.

  • The site must be less than one acre
  • Its value must not exceed €500,000
  • The child must build and live in the house as their main residence

If these conditions are met, the stamp duty rate is reduced to just 1%, making this a significant saving.

3. CGT (Capital Gains Tax) for the Parent

From the parent’s point of view, the site transfer could be considered a disposal, potentially triggering Capital Gains Tax (CGT). However, a Parent-to-Child CGT Relief may apply.

If the site is transferred as a gift, and the child meets the “principal private residence” criteria, the parent may not have to pay CGT.

It’s still important to seek professional advice and ensure any available reliefs are correctly applied.

Other Considerations

  • Planning Permission: Many parents apply for outline planning permission before transferring a site. This can help establish value and satisfy tax conditions.
  • Land Registry Fees & Legal Costs: There are additional fees involved in registering the site and drafting the legal documents.
  • Timeframe for Building: Some reliefs (like Stamp Duty Relief) require the child to build and occupy the house within a specific period—typically 2–3 years.

Need Help Transferring a Site?

Site transfers can be a wonderful way to support your child’s future—but they must be handled carefully to make full use of tax reliefs and avoid unnecessary liabilities.

At Eoin O’Gorman Solicitors in Wexford, we offer friendly, practical advice tailored to your situation. From drafting the transfer deed to liaising with Revenue, we’ll ensure the process is smooth and fully compliant.

📧 Reach out today: info@ogormansolicitors.ie
📍 Visit us: Crescent Quay, Wexford

Let us take the stress out of your site transfer—so you can focus on the future.