Succession Planning for Multi‑Jurisdictional Property Owners: A Guide for Irish Expats and Investors

Introduction

Irish families are increasingly global. 2022 data from the Central Statistics Office show that €1.28 bn of foreign direct investment flowed into Ireland, while Irish‑owned assets abroad total billions of euros – a clear sign that many Irish citizens hold property, rental portfolios or business interests in multiple jurisdictions.

When a property owner dies, the interaction between Irish law, the law of the country where the asset sits, and any relevant tax treaties can turn a well‑intentioned inheritance into a costly probate battle, double taxation, or even the forced sale of a cherished family home.

This article equips Irish expats, residents and investors with a step‑by‑step framework for succession planning across borders. It covers:

The impact of domicile and tax residency
Key differences in inheritance law (forced heirship vs. testamentary freedom)
Tools to avoid probate – trusts, foundations, joint ownership, life insurance
How to minimise inheritance‑tax (IHT) and Capital Gains Tax (CGT) exposure
Practical check‑lists and timelines

Bottom line: a multi‑jurisdictional succession plan is a living document that must be reviewed whenever you acquire a new asset, change residence, or when tax legislation changes – such as the 2025 UK inheritance‑tax thresholds (£325 k nil‑rate band, £175 k residence nil‑rate band, total £500 k) or the Irish CAT threshold (€335 k in 2025).

1. Why Multi‑Jurisdictional Planning Is Different

Feature	Ireland (common‑law)	Typical Civil‑Law Countries (e.g. France, Spain, Italy)	UK (post‑Brexit)
Testamentary freedom	Broad – can leave up to 100 % of estate	Forced heirship – 50‑60 % of estate must go to children/spouse	Broad – similar to Ireland
Probate	Centralised – Probate Office (CRO)	Separate probate in each country; often public	Separate probate in England & Wales
Inheritance tax (CAT/IHT)	CAT €335 k threshold, 33 % rate above	Varies (Spain 34 %, France 60 % for non‑lineal heirs)	IHT 40 % above £325 k (2025)
Recognition of foreign wills	Recognised under 1961 Hague Convention if formalities met	May require a local will or translation/notarisation	Generally recognised, but not for EU assets post‑Brexit

Key Take‑aways

Forced heirship can overturn a will drafted in Ireland.
Probate can be triggered in every jurisdiction where a property is situated, multiplying fees and delays.
Tax exposure multiplies – you may face Irish CAT, UK IHT, and a foreign inheritance tax on the same asset unless a treaty relief applies.

2. Determining Domicile, Tax Residence & “Place of Succession”

Domicile – the jurisdiction you consider your permanent home. Irish domicile attracts worldwide CAT; a non‑Irish domicile limits Irish tax to Irish‑situated assets.
Tax residence – where you pay income tax today (e.g., UK, Spain, Portugal). This decides where rental income and CGT are taxed now.
Place of succession – the law that governs the transfer of a specific asset. Generally the law of the asset’s location, unless a choice of law clause (e.g., EU Succession Regulation, now limited for UK) is available.

Practical tip: If you are a non‑domiciled Irish citizen living abroad, keep a clear record of the date you ceased to be domiciled in Ireland (e.g., a “de‑domiciliation” declaration to Revenue). This can dramatically reduce future CAT liability.

3. Core Legal Tools for Cross‑Border Estate Planning

3.1 Separate Wills vs. a Single International Will

Approach	Advantages	Risks
Separate local wills (one per jurisdiction)	Meets each country’s formalities; avoids automatic revocation clauses.	Must be perfectly coordinated – contradictory clauses can trigger litigation.
Single international will (under 1961 Hague Convention)	One document, recognised in all signatory states (including Ireland, many EU states).	Not recognised by the UK post‑Brexit; many civil‑law countries still require a local will for immovable property.

Best practice: Draft a master will in Ireland that includes a non‑revocation clause for any foreign wills, then prepare local wills for each country where you own immovable property.

3.2 Trusts, Foundations & Companies

Structure	Where It Shines	Tax & Legal Considerations
Offshore trust (Jersey, Guernsey, Cayman)	Holds foreign property, rental income, or shares; can bypass local probate.	Must be disclosed to Irish Revenue (Schedule D); UK IHT may still apply if settlor is UK‑resident.
Luxembourg “Family Foundation”	Holds shares in a family holding company; useful for EU assets.	Subject to Luxembourg tax on income; may qualify for EU‑wide inheritance‑tax relief.
Irish holding company	Keeps Irish‑situated assets separate; can use Company‑Owned Property (COP) model for rental income.	Company profits subject to Irish corporation tax (12.5 %); distributions may trigger CAT.
Joint tenancy with right of survivorship	Simple way to avoid probate for a spouse or partner.	All owners are automatically owners of the whole; cannot be used to exclude other heirs.

3.3 Life Insurance & “Policy as a Tax Wrapper”

Beneficiary designations bypass probate and can provide liquidity to pay inheritance taxes.
In the UK, a “discretionary trust policy” can be placed in a trust to avoid IHT on the death benefit.
In Ireland, the “life assurance” proceeds are generally exempt from CAT if the policy is in the name of the deceased and the beneficiary is the estate.

4. Managing Tax Exposure

4.1 Inheritance Tax (IHT / CAT)

Jurisdiction	2025 Threshold	Rate Above Threshold	Notable Relief
Ireland (CAT)	€335 k (individual)	33 %	Spouse exemption, Agricultural & Business Relief (up to 90 %).
UK (IHT)	£325 k nil‑rate band + £175 k residence nil‑rate band = £500 k	40 % (or 36 % if 10 % charitable gift)	Nil‑rate band transfer between spouses, Business Property Relief (up to 100 %).
France	€100 k (variable)	60 % (non‑lineal)	Family quotient reduces tax per child.
Spain	€100 k (regional)	34‑70 %	Spouse exemption; inheritance tax credit for close relatives.

Strategic moves

Use life insurance to cover the expected tax bill – keep the policy outside the estate.
Transfer assets during life (e.g., gifts) while staying below the annual gift‑exemption limits (€3 000 in Ireland, £3 000 in the UK).
Leverage double tax treaties – Ireland‑UK, Ireland‑Spain, etc., to claim credit for foreign inheritance tax paid.

4.2 Capital Gains Tax (CGT)

Irish residents are subject to CGT on worldwide disposals (12.5 % standard rate, 2025).
Many jurisdictions levy CGT on the sale of property; some (e.g., Portugal’s “non‑habitual resident” regime) offer exemptions for the first €500 k of gains.
Step‑up in basis at death can eliminate CGT for heirs, but only if the asset is transferred under the local inheritance rules.

Tip: Holding foreign property in a trust can allow the trust to realise the step‑up at death, but the trust itself may be liable for CGT on the asset’s disposal before distribution.

5. Practical Checklist for Multi‑Jurisdictional Owners

Phase	Action	Why It Matters
1. Asset Inventory	List every property, shareholding, rental income, digital asset, and any offshore entity. Include location, legal title, and current valuation.	Provides the foundation for tax calculations and legal drafting.
2. Domicile & Residence Review	Confirm your Irish domicile status and current tax residence. Document the date of any change.	Determines which tax regime (CAT vs. foreign inheritance tax) applies.
3. Legal Document Drafting	• Master will (Ireland) • Local wills (France, Spain, USA, etc.) • Trust deeds or foundation charters • Powers of attorney for each jurisdiction	Guarantees that each asset is governed by the correct law and avoids inadvertent revocation.
4. Tax Planning	• Life‑insurance policy naming beneficiaries • Gift‑exempt transfers • Review double‑tax treaty reliefs • Consider Business/ Agricultural Reliefs where applicable	Reduces the cash needed to settle taxes and protects wealth.
5. Probate & Administration Strategy	Appoint a local executor in each jurisdiction, or use a professional trustee to centralise administration.	Streamlines the winding‑up process and avoids multiple probate proceedings.
6. Digital & Intangible Assets	Create a digital asset register (cryptocurrencies, domain names, online businesses). Store passwords in an encrypted vault, with a trusted executor given access.	Prevents loss of access and ensures proper valuation for tax purposes.
7. Ongoing Review	Update the plan on major life events (marriage, divorce, birth, acquisition/disposal of assets) and after any legislative change (e.g., UK IHT thresholds).	Keeps the plan current and avoids surprises at death.

6. Common Pitfalls & How to Avoid Them

Pitfall	Consequence	Prevention
Relying on a single Irish will for foreign property	Foreign courts may deem the will invalid, triggering intestacy rules and forced heirship.	Draft local wills or a master will with explicit non‑revocation clauses.
Ignoring double‑tax treaty relief	Paying inheritance tax twice on the same asset.	Obtain a tax‑advisor’s certificate confirming treaty relief; claim credit on Irish tax return.
Leaving digital assets undocumented	Heirs lose access to valuable crypto or online businesses.	Maintain an encrypted “digital legacy” document with login details, updated annually.
Assuming joint tenancy removes all tax	Joint owners may still be liable for inheritance tax on the deceased’s share.	Review the tax position of each joint owner; consider “tenancy in common” with explicit shares.
Failing to update after Brexit	UK‑based assets may fall outside EU Succession Regulation, leading to unexpected probate.	Re‑draft UK‑related documents to comply with English law and consider a UK‑specific will.

7. Real‑World Example (Illustrative)

The O’Connor family – Irish couple living in Dublin, owning:

A holiday villa in Costa Blanca, Spain (valued €750 k).
An apartment in London, UK (valued £500 k).
A rental portfolio of three apartments in Lisbon, Portugal (valued €600 k).

Steps they took:

Declared non‑domicile in Ireland after moving to Spain for two years, limiting Irish CAT to Irish‑situated assets.
Executed three local wills – Spain, UK, Portugal – each referencing a master Irish will and containing a clause that the local will does not revoke any other will.
Set up a Jersey discretionary trust to hold the Spanish villa; the trust deed stipulated that the beneficiaries are the O’Connor children, with the trustees having power to sell the villa if needed.
Purchased a life‑insurance policy (£600 k) payable to the trust, covering the expected UK IHT on the London flat.
Registered a digital vault for their crypto holdings (worth €120 k) with a trusted solicitor as executor.

Result: On the father’s death, the Spanish villa passed to the trust without Spanish probate; the UK flat was covered by the insurance policy, avoiding a £200 k IHT bill; the Portuguese rentals remained in the estate, subject only to Irish CAT (which was mitigated by the children’s residence in Portugal and the applicable treaty). The family avoided three separate probate processes and saved an estimated €250 k in combined taxes and legal fees.

8. Choosing the Right Professionals

Expertise	Typical Fee (2025)	What They Deliver
International Estate Lawyer (Ireland/UK/EU)	€250‑€450 per hour	Drafting coordinated wills, reviewing revocation clauses, advising on forced heirship.
Cross‑Border Tax Advisor	€200‑€350 per hour	Calculating CAT/IHT/CGT exposure, applying treaty reliefs, structuring life‑insurance.
Trust Company / Foundation Provider	€1 500‑€5 000 set‑up + annual admin	Creation and management of offshore trusts or family foundations.
Property Management Agent (foreign)	5‑10 % of rental income	Handles tenancy agreements, local compliance, and tax filing.
Digital Legacy Specialist	€500‑€1 200	Secure vault creation, password management, succession of digital assets.

Tip: Look for firms with Irish‑qualified solicitors who are members of the International Bar Association’s Wills & Estates Committee – they are accustomed to navigating multiple legal systems.

Conclusion

Succession planning for Irish owners of overseas property is no longer a niche concern; it is a necessity for anyone with assets in more than one jurisdiction. By:

Clarifying domicile and tax residence,
Coordinating local wills or a master international will,
Using trusts, foundations, or joint ownership to sidestep probate,
Strategically managing inheritance‑tax and CGT exposure, and
Maintaining a living inventory (including digital assets),

you protect family wealth, preserve your wishes, and avoid the costly, emotional turmoil that often follows an unplanned cross‑border inheritance.

Take the first step today: schedule a free initial consultation with an international estate planning specialist and begin documenting the assets that matter most to you and your loved ones. A well‑crafted plan today can mean peace of mind – and a smoother transition – for the generations that follow.