Capital Gains Tax in Ireland: A Complete Guide

Updated: This article was reviewed in August 2025 to ensure accuracy and relevance.

Introduction 

One of the most common issues that clients require help with is associated with capital gains tax in Ireland. Otherwise known as CGT, this type of tax is incurred when gains result from selling or disposing an asset. Those obligated to pay CGT must settle their accounts via the Revenue Commissioner self-assessment system. Note that this includes PAYE taxpayers, and it also applies to residents, non-residents, companies, and individuals.

What is Irish Capital Gains Tax?

It is first wise to clearly define capital gains taxation in Ireland. Liquidating an asset (either tangible or intangible) that can be converted into cash is often liable for this tax. Irish capital gains tax is associated with the gains arising from such a sale. These can include:

• Property
• Shares
• Insurance policies
• Foreign currencies
• Patents
  
  

Note that CGT tax in Ireland may also apply to a transfer of ownership. Sales, gifts, and exchanges are some relevant examples. This tax is derived from the disposal (sale) of the asset in question; calculated by determining the difference between the profit, and the purchase cost. This will be clarified through an example a bit later.

Current CGT Rates and Thresholds

The standard rate for CGT tax throughout Ireland is 33%. Note that the initial €1,270 is exempt from this tax. However, there are several other taxable capital gain thresholds to highlight:
 

• Foreign investments and life insurance policies: 40%.
• Profits from venture capital funds (individuals and partnerships): 15%.
• Profits from venture capital funds (companies): 12.5%

Incidental costs (such as stamp duties, legal fees and advertising) may be liable for deductions. Tax and accounting specialists will determine which deductions are applicable. 

When is CGT Payable in Ireland?

Ireland CGT applies to any profits occurring between 1 January and 30 November of a given year. All payments must be settled by 15 December of the same year. However, any capital gains tax in Ireland associated with sales from between 1 December and 31 December must be settled by 31 January of the following year.

We should also point out that foreign currencies are subject to Irish CGT. Any proceeds resulting from profits in a foreign currency (such as the United States dollar), will be determined by the current exchange rate. This can then be used to clarify the amount of CGT that needs to be settled.

Property and Capital Gains Tax

What about property gains tax in Ireland? Similar to the thresholds mentioned earlier, the standard rate is set at 33%. If the property is sold, owners will be liable to pay this percentage of the proceeds (exempting the initial profit of €1,270). However, owners may be exempt through a programme known as private property residence relief if the location is classified as a "main property". Here is a brief breakdown of the requirements:
 

• You have lived in the home since it was first purchased.
• The location has not been used for rentals, or for business-related purposes.

Note that private property residence relief is determined on a case-by-case basis. 

How to Calculate a Taxable Capital Gain

Let us use an example to cement the points highlighted in the previous sections. This process can be broken down into four sections:

• The market value of an asset.
• The purchase price.
• Any incurred expenses.
• The CGT threshold.

For instance, imagine that you purchase a home for €100,000 euros. You then spend €40,000 euros on refurbishments before selling it for €200,000 euros. In this case, you will be required to pay a 33% capital gains tax (excluding the initial €1.270 euros) on the €60,000 euros in profit.

Exemptions and Relief for CGT in Ireland

Here are some common instances when an individual may be exempt from paying capital tax in Ireland (excluding the scenarios mentioned earlier): 

• The sale of tangible movable property (such as vehicles, clothes, or machinery) not exceeding €2,540 euros.
• Profits from sales of Savings Certificates or Government Securities.
• The transfer of assets between two spouses claiming the same residence.
• Profits from selling a work of art if the initial loan value did not exceed €31,740.
• Personal injury compensation payments when greater than 50% of the individual's total yearly income.

Furthermore, capital gain in Ireland can be reduced by a process known as retirement relief (Nathan Trust can explain this in greater detail).

Common Pitfalls to Avoid with CGT

Now that we have an understanding of the capital gains tax rate in Ireland (and the associated requirements, it is wise to highlight a handful of common mistakes. Here are five typical examples:

• Incorrectly calculating your tax rate.
• Missing payment deadlines.
• Failing to claim any tax relief that may be available.
• Mistakes when classifying your residency.
• Neglecting to report all transactions within a given year.

We can now see why working with experts is normally the best way forward, which leads us into the next section.

Why Expert Tax Advice Helps with CGT

There are several scenarios which can be addressed by experts. One involves non-domiciled individuals (an Irish resident whose permanent home is outside Ireland). They may be liable for profits resulting from the sale of assets within Ireland, and funds transferred into Ireland that result from a sale abroad. However, note that non-residents are only responsible for CGT on the sale of specific Irish assets. Land and buildings are two common examples.

Cryptocurrencies have likewise become a concern. Capital gains issues will need to be addressed if gains and/or losses are accrued by an individual. In other words, the person must be the sole owner of the cryptocurrency in question.

Due to the complicated nature of these scenarios, turning to the team at Nathan Trust is the best way to make certain that no mistakes are made; especially when taking into account the ever-evolving nature of cryptocurrency regulations.

Those who wish to learn more, or are concerned about their current obligations should contact a professional at Nathan Trust. We will be more than happy to provide additional assistance, and our reputation speaks for itself.