Inheriting the family home.
You are inheriting a parent's house, most likely the home you grew up in. At 2026 property prices, this almost always crosses the CAT threshold. Whether you pay tens of thousands in tax or pass the home tax-free depends on one specific relief: the Dwelling House Exemption.
Why the family home is the biggest CAT decision.
At April 2026 Dublin prices, the median family home crosses €500,000. A child inheriting that home faces €33,000 in CAT unless the Dwelling House Exemption applies. On a €700,000 house, the exposure is €99,000. On a €1,000,000 house, €198,000. These are real numbers that force sales of family homes to pay tax. unless DHE is claimed correctly.
The relief is technical and specific. Revenue scrutinises DHE claims closely because it is a full exemption of substantial value. Getting it wrong is expensive; getting it right takes care but is entirely doable with the right documentation.
The five conditions for Dwelling House Exemption.
The home was the deceased's principal residence at death
The home must have been the deceased person's only or main residence at the date of death. There is some flexibility for nursing-home cases, but the basic test is that the deceased actually lived there.
You lived in the home for 3 years before death
The beneficiary must have occupied the dwelling as their main residence for the three years immediately before the death. Short absences for study or employment abroad are usually forgiven. Documentary evidence is key. utility bills, correspondence, electoral register.
You own no other dwelling house
At the date of inheritance, the beneficiary must not own, or have a share in, any other residential property. This is the condition most commonly missed. buying an apartment while still living with an ageing parent breaks the exemption.
You will live there for 6 years after (unless 55+)
The beneficiary must continue to occupy as main residence for six years after inheriting. The condition is waived if the beneficiary is 55 or over at the date of inheritance, which helps adult children of deceased parents.
Three DHE mistakes that cost real money.
Owning an investment apartment. Having any interest in any other dwelling. including a rented-out property you own, a holiday home, or a share in a property with a sibling. breaks condition 3. Check the title of every property the beneficiary has any interest in.
Short continuous-residence gaps. The 3-year residence test must be continuous. Study abroad can be fine if documented properly as temporary; moving out for 6 months to live with a partner is harder to defend. Evidence matters: bank statements, utility bills, electoral register.
Selling too soon after inheriting. Selling within 6 years claws back the exemption unless the sale is to fund long-term care for the beneficiary or the beneficiary is 55+ at date of inheritance. Plan the 6-year retention carefully.
The Complete Bundle gets DHE right, every time.
A correctly-claimed DHE on a Dublin family home saves €30,000-€130,000. A failed one costs the same. The Complete Bundle tests all five conditions, identifies documentary evidence gaps, and provides fallback positions if the claim is challenged. For €449, this is the best-value relief claim in the Irish tax system.
Complete Bundle
Full DHE five-condition assessment with evidence checklist, fallback alternatives, and the CAT calculator showing tax saved.
See the packReadiness Check
Diagnostic only. Confirms whether DHE is likely to apply, but does not produce the full assessment or evidence checklist.
See alternative