Selling inherited property in Ireland can be a complex process, but it doesn’t have to be. With careful planning and execution, you can sell your inherited property quickly and efficiently, and for the best possible price.
Here is a step-by-step guide on how to sell inherited property in Ireland:
- Get your paperwork in order. The first step is to gather all of the necessary paperwork for your inherited property. This includes the grant of probate, which is the legal document that gives you the right to sell the property on behalf of the deceased. You will also need to obtain a copy of the title deed, which shows who the current owner of the property is.
- Get the property valued. Once you have all of your paperwork in order, you need to get the property valued. This can be done by hiring a professional valuer or by using an online valuation tool. It is important to get a realistic valuation of the property, as this will help you to set a competitive asking price.
- Decide how you want to sell the property. There are two main ways to sell inherited property in Ireland: through a real estate agent or by private sale. Selling through a real estate agent is the most common option, as they have the experience and expertise to help you sell your property quickly and for the best possible price. However, it is important to note that real estate agents charge a commission, which can range from 1-3% of the sale price. If you choose to sell your property by private sale, you will need to do all of the marketing yourself. This can be a time-consuming process, but it can save you money on commission fees.
- Market the property. If you are selling your property through a real estate agent, they will take care of all of the marketing for you. However, if you are selling your property by private sale, you will need to market the property yourself. This can be done by placing ads in local newspapers and magazines, or by listing the property on online property portals.
- Negotiate a sale. Once you have received an offer on your property, you will need to negotiate a sale price. This can be a tricky process, but it is important to be firm and not accept the first offer you receive.
- Close the sale. Once you have agreed on a sale price, you will need to close the sale. This involves signing a contract and exchanging contracts with the buyer.
Here are some additional tips for selling inherited property in Ireland:
- Be prepared to negotiate. The Irish property market is competitive, so be prepared to negotiate on the sale price of your property.
- Be realistic about your expectations. It is important to have realistic expectations about how long it will take to sell your property and how much you can expect to get for it.
- Be flexible with your closing date. The closing date is the date on which the sale of the property is completed. If you are flexible with your closing date, this may make your property more attractive to buyers.
- Be prepared to walk away. If you are not happy with the offers you are receiving, be prepared to walk away from the sale. It is better to wait for the right offer than to sell your property for less than it is worth.
By following the steps above and keeping the tips in mind, you can sell your inherited property quickly and efficiently, and for the best possible price.
There are two main taxes that you may need to pay when selling inherited property in Ireland:
- Capital Acquisitions Tax (CAT)
- Capital Gains Tax (CGT)
Capital Acquisitions Tax (CAT)
CAT is a tax that is paid on gifts and inheritances. If you inherit a property, you may need to pay CAT on the value of the property, depending on your relationship to the deceased and the value of your inheritance.
There are a number of exemptions and reliefs that may apply to CAT, such as the main residence exemption and the agricultural relief. If you are unsure whether you need to pay CAT, you should seek professional advice.
Capital Gains Tax (CGT)
CGT is a tax that is paid on the profit that you make when you sell an asset. If you sell an inherited property, you may need to pay CGT on the difference between the purchase price (which is the value of the property at the date of death) and the sale price.
There are a number of exemptions and reliefs that may apply to CGT, such as the main residence exemption and the entrepreneur relief. If you are unsure whether you need to pay CGT, you should seek professional advice.
Here are some additional things to keep in mind when selling inherited property in Ireland:
- If you sell the property within two years of inheriting it, the capital gain will be taxed at a higher rate.
- If you use the property as your main residence for at least three years before selling it, you may be eligible for the main residence exemption, which means that you will not have to pay CGT on the sale.
- If you are selling the property to a close relative, such as your child or sibling, you may be eligible for a reduced rate of CGT.
If you are unsure about your tax liability when selling inherited property in Ireland, you should seek professional advice from a qualified accountant or tax advisor.
