Capital Gains Tax (CGT) is one of those taxes that many people only think about when they are about to sell something valuable – a property, a block of shares, or a cryptocurrency holding. By that point, it is often too late to do much tax planning. In Ireland, CGT is charged at a flat rate of 33% on the gain (profit) from disposing of an asset, which is one of the higher rates in Europe. Understanding how it works, what exemptions are available, and when you need to pay is essential for anyone with investments or assets they may sell.
How CGT Works in Ireland
CGT applies when you dispose of an asset for more than you paid for it. A disposal includes selling, gifting, exchanging, or transferring an asset. The tax is charged on the gain, not the sale price. The gain is calculated as:
Sale price − Purchase price − Allowable costs − Annual exemption = Taxable gain
Allowable costs include stamp duty paid on purchase, legal fees, auctioneer fees, and any enhancement expenditure (costs that added value to the asset). You cannot deduct financing costs such as mortgage interest when calculating CGT on property.
Every individual has an annual CGT exemption of €1,270. This means the first €1,270 of gains in any tax year is tax-free. Gains above this threshold are taxed at 33%. This exemption has not changed in many years and is widely considered inadequate given inflation, but it remains the current position.
Use our capital gains tax calculator to work out the exact tax due on any disposal.
CGT on Property
If you sell an investment property in Ireland, the gain is subject to CGT at 33%. Your principal private residence (PPR) is exempt from CGT, so selling your family home does not trigger a tax bill. However, if the property was your PPR for only part of the time you owned it, you may qualify for partial PPR relief.
Key points for property CGT:
- Enhancement expenditure (extensions, renovations) is deductible, but maintenance and repairs are not
- Stamp duty paid when you bought the property is deductible
- Legal and auctioneer fees on both purchase and sale are deductible
- If you purchased the property before 2003, you may be able to apply an indexation factor to the purchase price to account for inflation up to 2003
For landlords selling a rental property, the gain can be substantial if the property has appreciated significantly. Planning the timing of the sale relative to the tax year, using the annual exemption, and ensuring all allowable costs are captured can make a meaningful difference. Our stamp duty calculator can help you work out the acquisition costs that will be deductible on a future sale.
CGT on Shares and Investments
Selling shares, ETFs, or investment funds triggers CGT on the gain. For shares bought and sold on the stock market, the calculation is relatively straightforward: sale price minus purchase price minus dealing fees minus the €1,270 exemption, then taxed at 33%.
However, there are some complications with investment funds. Irish-domiciled funds and EU-regulated funds (including most ETFs available in Ireland) are subject to special rules under the gross roll-up regime. These funds are subject to exit tax at 41% rather than CGT at 33%, and there is also a deemed disposal every eight years, meaning you may owe tax even if you have not sold. This is an important distinction that catches many investors off guard.
If you hold individual shares (e.g., through a stockbroker or trading platform), CGT at 33% applies on disposal. If you hold ETFs or managed funds domiciled in Ireland or the EU, exit tax at 41% is more likely to apply. The rules are complex, and getting professional advice is recommended for large portfolios.
CGT on Cryptocurrency
Revenue has confirmed that cryptocurrency is treated as an asset for CGT purposes. This means selling, exchanging, or gifting cryptocurrency triggers a disposal and any gain is subject to CGT at 33%. This includes:
- Selling Bitcoin, Ethereum, or any other crypto for euro or another fiat currency
- Exchanging one crypto for another (e.g., swapping BTC for ETH)
- Using crypto to pay for goods or services
- Gifting crypto to another person
Each of these events is a separate disposal, and the gain on each must be calculated individually. For active traders, this can mean hundreds of disposals per year, each requiring a CGT computation. Keeping detailed records of every transaction, including the date, amount, and value in euro at the time, is critical.
Our crypto tax calculator can help you estimate the CGT due on your cryptocurrency disposals.
Payment Deadlines
CGT in Ireland operates on a split-year payment basis, which is different from income tax:
- Initial period (1 January to 30 November): CGT is due by 15 December of the same year
- Later period (1 December to 31 December): CGT is due by 31 January of the following year
This means if you sell an asset in March 2026, the CGT is due by 15 December 2026. If you sell in December 2026, the CGT is due by 31 January 2027. These deadlines are strict, and interest of 0.0219% per day applies to late payments.
You must also declare all disposals on your annual tax return (Form 11 for self-assessed individuals, or Form CG1 for PAYE workers who do not otherwise file a Form 11). Even if a disposal results in a loss, it should be reported.
Losses and Reliefs
If you make a loss on the disposal of an asset, you can offset that loss against gains in the same year or carry it forward to offset future gains. Losses cannot be set against income, only against other capital gains. This is an important planning consideration: if you have both winning and losing investments, disposing of them in the same tax year allows the losses to reduce the gains and lower your overall CGT bill.
Other reliefs include Entrepreneur Relief, which applies a reduced CGT rate of 10% on the first €1 million of qualifying gains when selling a business. This relief is valuable for business owners who are selling their company or its assets, but the qualifying conditions are strict. Our capital gains tax calculator can model different scenarios to help you plan effectively.