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Overview of Capital Gains Tax (CGT) in Ireland
Capital Gains Tax (CGT) is a tax on the profit (the “capital gain”) you make when you dispose of certain assets. A disposal can include selling, gifting, exchanging or otherwise transferring an asset. CGT is charged on the gain, not on the total sale proceeds.
In Ireland, most chargeable gains are taxed at 33%, with a higher rate of 40% applying to certain foreign life policies and investment products.
Who pays Capital Gains Tax?
You may be liable to Irish CGT if you:
- Are resident in Ireland – you are generally taxed on your worldwide gains.
- Are non‑resident – you may still be taxed on gains from Irish land, buildings and certain other specified assets.
You cannot avoid CGT on the sale of Irish land or buildings simply by claiming to be non‑resident.
What is a chargeable gain?
A chargeable gain is usually calculated as:
- The sale price (or market value in some cases),
minus
- The amount you originally paid for the asset,
minus
- Allowable costs, such as:
- Money spent to improve or enhance the asset
- Professional fees (for example, legal or agent fees) incurred on acquisition or disposal
If you incur a loss instead of a gain, this may be treated as an allowable loss and can often be set against other capital gains in the same or future tax years.
Annual exemption and CGT rate
Every individual is entitled to an annual CGT exemption of €1,270. This is deducted from your total chargeable gains for the year, after reliefs and allowable losses are applied.
The standard CGT rate is 33%. The tax is applied to your taxable gain, which is the total chargeable gains less:
- Your annual exemption
- Allowable losses
- Any other reliefs or exemptions you qualify for
Common assets subject to CGT
CGT may apply when you dispose of assets such as:
- Investment properties and land
- Shares and securities
- Crypto‑assets (such as cryptocurrencies and tokens)
- Business and farm assets
- Certain valuable personal assets
Some disposals are exempt from CGT, including gains from private motor cars, certain betting and lottery winnings, and small gains on moveable property below specific thresholds.
Key CGT reliefs and exemptions
There are several important CGT reliefs that can significantly reduce or eliminate the tax payable, including:
- Principal Private Residence (PPR) relief – on the sale of your main home, subject to conditions
- Retirement relief – for qualifying business or farm disposals from age 55, subject to limits and conditions
- Relief for certain properties acquired between 7 December 2011 and 31 December 2014, where conditions are met
Professional advice is often recommended to ensure you are claiming all relevant reliefs.
When and how is CGT paid?
CGT is paid in instalments based on the date you dispose of the asset. You must:
- Calculate your gain and the CGT due
- Pay the CGT by the relevant payment deadline
- File a CGT return (usually via your Income Tax Return or Form CG1)
Late payment or failure to file can result in interest and penalties.
Need help with Capital Gains Tax?
CGT can be complex, especially where multiple assets, cross‑border issues or reliefs are involved. Tailored advice can help you:
- Minimise your CGT liability within the rules
- Comply with payment and filing deadlines
- Avoid common errors that lead to Revenue queries or penalties
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Speak to Professional Tax Advisers
To discover more about Capital Gains Tax in Ireland, please call us on +353 (0)1 272 3858 or complete a Free Online Enquiry.