An interesting article in the Irish Times, (17th April 2018), where a question is asked, ‘If I allow my son and his girlfriend to live in one of my investment properties, rent free, do I have a tax liability’?
The answer…yes you could.
‘If the rent would be about €1,000 a month, they are effectively getting a gift from you of €12,000 a year.’
As the son can receive a total of €310,000 in gifts and inheritances between his parents, this amount could be offset against this limit.
In saying that, you are entitled to give anyone €3,000 a year. In that case, this could reduce the amount to €6,000 to be offset if €3,000 was gifted to the son and his girlfriend. Also, their wife/husband could also give €3,000 separately.
This means you could effectively gift them a total of €12,000 a year, meaning eliminating a tax issue.
Read this article in full here