Dwelling House Exemption eligibility checker

The Dwelling House Exemption can pass the family home to a qualifying beneficiary entirely free of CAT. Four conditions must be met. This checker walks through each. Often saves tens of thousands of euro on a Dublin or Cork family home.

The Section 86 five-condition test

The Dwelling House Exemption is set out in Section 86 of the Capital Acquisitions Tax Consolidation Act 2003, as amended by Finance Act 2016. For inheritances on or after 25 December 2016, all five conditions must be met:

1. The dwelling must be the principal private residence of the person who died at the date of their death.
2. The beneficiary must have lived in the dwelling as their only or main home for the three years immediately before the date of the inheritance.
3. The beneficiary must not own, or have a share in, any other dwelling house at the date of inheritance.

4. The beneficiary must continue to occupy the dwelling as their main residence for 6 years after inheriting, unless they are 65 or over at the date of inheritance, required to live elsewhere by reason of employment, or required to live elsewhere because of mental or physical infirmity certified by a doctor.

5. The beneficiary must not acquire an interest in any other dwelling house from the same disponer between the date of the inheritance and the valuation date.

Failing any one condition voids the entire exemption. If the exemption fails, the full value of the house is assessed under the beneficiary's normal CAT threshold.

Why this matters

A parent leaves their Dublin home worth €500,000 to their only child, who has lived there for 10 years and owns no other property. If the child meets all five conditions, the full €500,000 passes tax-free. Without the exemption, the CAT charge would be €33,000 (33% of €100,000 above the €400,000 Group A threshold). For larger estates, the savings are dramatically bigger. on a €800,000 home, the exemption saves €132,000 in CAT.

When it fails

The most common failures:

• Buying an apartment while still living with the parent. breaches condition 3.
• Brief periods away for study or contract work. usually fine, but careful documentation is needed.
• Moving out soon after inheriting: breaches condition 4 (unless over 65, or for qualifying employment or medical reasons).
• The parent having moved to a nursing home. can fail condition 1 if the home was no longer their principal residence at death.

This calculator is a preparation tool using Irish tax rates and rules for 2026. It is not legal or tax advice. For complex estates, consult a solicitor or tax adviser. All values are estimates based on the information you provide.