Sell an asset for more than you paid for it and Revenue usually wants a share of the profit. That share is capital gains tax. It catches people out more often than almost any other Irish tax, partly because the payment date arrives long before most people think to file anything, and partly because the rules around property, shares and business sales each work a little differently.
This guide walks through how capital gains tax works in Ireland for personal, property and business disposals. You will see the standard rate, the annual personal exemption, how to calculate a chargeable gain, the two payment dates, the CG1 return, and the main reliefs that can cut a bill sharply, including principal private residence relief and the 10% rate under Revised Entrepreneur Relief.
What is capital gains tax in Ireland?
Capital gains tax, usually shortened to CGT, is a tax on the profit you make when you dispose of an asset. The important word there is profit. CGT applies to the gain, not the full sale price. If you bought shares for €10,000 and sold them for €16,000, the gain of €6,000 is what matters, not the €16,000 you received.
"Dispose of an asset" covers more than a straight sale. You make a disposal when you sell, gift, exchange or transfer something, and even when you receive compensation or an insurance payout for an asset that has been lost or destroyed. Gifting an asset to a family member is still a disposal for CGT purposes, which surprises a lot of people. CGT can also apply to companies, although they fall under separate corporation tax rules on chargeable gains, so the focus here is on individuals, sole traders and business owners.
Your residence position decides how far CGT reaches. People who are resident or ordinarily resident and domiciled in Ireland are liable to Irish CGT on their worldwide gains. If you are resident but not domiciled in Ireland, foreign gains are generally only taxed when remitted to Ireland. Someone who is neither resident nor ordinarily resident in Ireland is usually only chargeable on gains arising on the disposal of certain Irish assets, such as land and buildings situated in Ireland. Citizens Information sets out the residence position in its overview of capital gains tax.
What assets are subject to capital gains tax?
Most assets that can rise in value fall within CGT. The common ones include investment property, second homes and land, shares and investment funds, business assets and goodwill, and valuable moveable property such as antiques or artwork above certain thresholds. Gains on the sale of a business, or part of one, sit here too.
Some assets are exempt from CGT. The main ones to know are:
- Your principal private residence, where the home has been your only or main residence throughout your ownership, subject to relief conditions.
- Irish government stocks and certain securities.
- Winnings from betting, lotteries and prize bonds.
- Wasting chattels such as private motor cars, which are not treated as chargeable assets.
- Life assurance policies, in your own hands as the original owner, although foreign life assurance policies follow different rules.
A few situations need extra care. Disposals between connected persons, gifts, and the sale of only part of a holding of land or shares are all chargeable events, and the way you value them is not always the simple sale price. Revenue lists the full position in its guide to what is exempt from CGT.
What is the rate of capital gains tax in Ireland?
The standard rate of capital gains tax in Ireland is 33%. That single rate applies to most chargeable gains, whether the asset is a property, a parcel of shares or a holiday home. A higher 40% rate can apply to gains from certain foreign life assurance policies and offshore funds, which is one reason those products need specialist handling.
The headline rate of CGT does not change for business owners, but a relief can reduce the effective rate to 10% on qualifying disposals. That is Revised Entrepreneur Relief, covered further down. The point to hold onto is that the rate of CGT is 33% as standard, and reliefs work by reducing the gain that is taxed or the rate applied, rather than by giving a different headline figure.
How much capital gains are tax-free in Ireland?
Every individual has an annual personal exemption of €1,270. The first €1,270 of your chargeable gains in a tax year is exempt from CGT, and you only pay tax on the balance above it. This annual exempt amount cannot be carried forward to a later year, and it cannot be transferred between spouses or civil partners. Each spouse has their own €1,270, so a couple can shelter €2,540 of gains between them, but only by each holding the relevant asset. Revenue confirms the exemption in its guidance on how to calculate CGT.
How to calculate your capital gains tax
The core calculation is straightforward in shape, even when the numbers get fiddly. You take the sale proceeds, subtract the cost of the asset and any allowable expenses, deduct any reliefs and the annual exemption, and apply 33% to what is left.
Put as a sequence: proceeds, less cost, less allowable expenses, equals chargeable gain. Then apply the €1,270 exemption and any reliefs, and tax the remainder at the standard rate. Here is a worked example for a single investment property sale.
|
Step |
Amount |
|
Sale proceeds |
€400,000 |
|
Less price you paid for the asset |
€250,000 |
|
Less allowable expenses (legal, agent, enhancement) |
€20,000 |
|
Chargeable gain before exemption |
€130,000 |
|
Less annual personal exemption |
€1,270 |
|
Taxable gain |
€128,730 |
|
CGT due at 33% |
€42,480.90 |
The figures are illustrative, but the structure holds for any disposal. Note that CGT is charged on the gain made on the disposal, never on the headline price you received.
What counts as allowable expenses?
Allowable expenses fall into three groups, and getting them right reduces your tax liability directly. They are:
- Acquisition costs: the price you paid for the asset, plus legal fees, stamp duty and surveyor or agent fees on the purchase.
- Disposal costs: auctioneer or estate agent fees, solicitor fees and advertising costs on the sale.
- Enhancement expenditure: capital improvements that add value or extend the life of the asset, such as an extension or a new roof. Routine repairs and decorating do not count.
Keep every receipt, invoice, contract and completion statement. Without records, a deduction you are entitled to can be disallowed, and the cost of that is real money.
When do you use market value instead of price?
Sometimes the actual price is not the figure Revenue uses. Market value replaces the sale price where a transaction is not at arm's length, which includes gifts and transfers to connected persons such as family members. If you gift a property worth €350,000 to a child for nothing, CGT is still calculated as if you had sold it at €350,000. A defensible, professional valuation matters in these cases, because Revenue can challenge a figure that looks convenient.
What about indexation for older assets?
For assets bought before 2003, indexation relief can increase the base cost to reflect inflation between purchase and 2002, which reduces the chargeable gain. Indexation was frozen for expenditure incurred on or after 1 January 2003, so it does not apply to anything acquired since then. If you are selling an asset you have held since the 1990s or earlier, the indexation multiplier can make a meaningful difference, and it is worth checking the position rather than assuming it is gone.
What CGT reliefs and exemptions are available in Ireland?
Reliefs are where careful planning pays for itself. Several reliefs and exemptions can remove or reduce a CGT charge, and most carry conditions that must be met before the disposal, not after. The main ones are set out below. Revenue keeps a full index of CGT reliefs.
Is your principal private residence exempt from CGT?
Principal private residence relief means that the sale of your only or main home is usually fully exempt from CGT. To qualify, the property must have been your private residence throughout the period you owned it, and grounds of up to one acre can be included. The last twelve months of ownership are treated as a period of occupation even if you have already moved out.
The relief can be restricted in a few situations. If you let the property for a time, used part of it exclusively for business, or had long periods of non-occupation beyond the allowances, only part of the gain may be exempt. Utility bills, electoral registration and other evidence of occupation help support a PPR claim if Revenue asks.
Are transfers between spouses exempt?
Transfers of assets between spouses or civil partners who are living together do not trigger a CGT charge at the time of transfer. The receiving spouse takes over the original base cost and acquisition date, so the gain is effectively deferred. When that spouse later sells to a third party, CGT is calculated using the original purchase price, not the value at the date of the inter-spouse transfer.
What reliefs apply to business owners?
Two reliefs matter most when selling a business, and both reward forward planning.
Retirement Relief applies where someone aged 55 or over disposes of qualifying business or farm assets they have owned and used for the required period. Despite the name, you do not have to actually retire. The relief can fully or partly exempt the gain, with the available limits depending on your age and whether the disposal is to a child or to someone outside the family. Revenue sets out the conditions for the disposal of a business or farm.
Revised Entrepreneur Relief reduces the rate of CGT to 10% on gains from the disposal of qualifying chargeable business assets, against the standard 33%. For gains arising on or after 1 January 2026, the lifetime limit on relievable gains rose from €1 million to €1.5 million under Budget 2026. To qualify, you generally need to have owned the business assets for a continuous three years out of the five years before the disposal, among other conditions. The detail sits in Revenue's guidance on Revised Entrepreneur Relief.
How does CGT work when selling property in Ireland?
Property is the most common reason people meet CGT, and the treatment depends on what the property is. Your main home usually attracts PPR relief and may be fully exempt. An investment property, a second home or development land is generally fully chargeable, with the gain taxed at 33% after expenses and the annual exemption.
Before you calculate anything, gather the documents. For property you typically need the purchase and sale contracts, completion statements, and records of any improvement work such as extensions or renovations. If you lived in the property for part of your ownership and let it for the rest, the gain is apportioned between the exempt and chargeable periods, so accurate dates matter. For older properties bought in Irish punts, you convert the cost to euro and check whether indexation relief applies.
When are the CGT payment dates and how do you pay?
Irish CGT runs on a "pay first, file later" basis, and the payment dates are split across two periods within the tax year. The split catches many people out, because the tax is due well before the return.
|
Disposal period |
Payment deadline |
|
Initial period: 1 January to 30 November |
15 December of the same year |
|
Later period: 1 December to 31 December |
31 January in the following year |
So if you sell an investment property in June, the CGT is due by 15 December that year. Sell it on 20 December instead and the deadline is 31 January the following year. Missing a payment date leads to interest and possible penalties, so the date is worth diarising the moment a sale completes. Revenue explains the position on when and how you pay and file CGT.
You pay CGT through Revenue's online systems, ROS for the self-employed and myAccount for PAYE taxpayers, using a CGT payment slip that identifies the tax year and period. If you have several disposals in a year, you total the gains and losses across them and pay on the net chargeable position, which is why tracking each disposal as it happens makes the December calculation far less stressful.
How do you file a CGT return to Revenue?
Paying the tax is separate from filing the return. Even where no tax is due, because a relief or the annual exemption covers the gain, you usually still have to report the disposal.
The return you use depends on your circumstances. If you are a chargeable person filing a self-assessment, you report capital gains within your Form 11 income tax return on ROS. If you do not normally file an income tax return, you use the paper Form CG1, or you may report through Form 12 where appropriate. The CG1 for a given tax year is generally due by 31 October of the following year, in line with the income tax deadline.
Whichever return applies, you need the asset description, the acquisition and disposal dates, the proceeds, the allowable costs, and details of any reliefs claimed. If you made losses on other disposals, you record those too. Capital losses can be offset against chargeable gains in the same tax year, and any unused loss can be carried forward against future gains, which makes keeping a clean record of losses genuinely valuable.
How Kinore can help with your CGT
Capital gains tax rewards getting the detail right and punishes guesswork. A missed allowable expense, an overlooked relief, or a payment date that slips past 15 December can each cost thousands. The reliefs that matter most, PPR, Retirement Relief and the 10% Entrepreneur Relief rate, all turn on conditions you need to satisfy before you sign contracts, not after.
Kinore is a digital-first accountancy firm with senior, dedicated client managers who handle CGT calculations and filings day in, day out. We work out the chargeable gain, identify every allowable expense and relief you can claim, confirm which payment date applies to your disposal, and file the CG1 or Form 11 correctly. If you are weighing up selling property, shares or a business, talk to us before the sale, while there is still room to plan. Get in touch with the Kinore team to map out your CGT position.
Frequently asked questions
How much capital gains is tax-free in Ireland?
The first €1,270 of chargeable gains you make in a tax year is exempt from CGT under the annual personal exemption. It applies per individual, cannot be transferred between spouses, and cannot be carried forward to a later year. Anything above €1,270 is taxed at the standard rate of 33%.
What is the 7-year rule for capital gains in Ireland?
The seven-year rule was a time-limited relief for land and buildings bought between 7 December 2011 and 31 December 2014 and held for at least seven years. Property bought in that window and held for the full period could have the gain relieved in proportion. Because the qualifying purchase window closed at the end of 2014, the relief now affects only assets acquired during those specific years.
How do you avoid capital gains tax on property in Ireland?
You cannot avoid a genuine CGT charge, but you can reduce it legitimately. Principal private residence relief can fully exempt your main home. Claiming every allowable expense, including enhancement costs, lowers the gain. Using each spouse's annual exemption and any available reliefs reduces the balance taxed. For business or development property, Retirement Relief or Entrepreneur Relief may apply. Planning before you sell is what makes the difference.
Do you pay CGT on inherited property in Ireland?
You do not pay CGT when you inherit a property, because inheritance falls under capital acquisitions tax rather than CGT. You take the property at its market value at the date of death, and that becomes your base cost. If you later sell it, CGT applies to any gain above that market value, calculated in the usual way.
What is the difference between exit tax and CGT in Ireland?
CGT is charged at 33% on gains from disposing of most assets, such as property, shares and business assets. Exit tax is a separate charge that applies to certain investment products, including many Irish and EU funds and some life assurance policies, often at a 41% rate and on a deemed disposal basis. The two regimes do not overlap, so the type of asset decides which applies.
The information provided in this article is for general guidance and informational purposes only. It does not constitute professional accounting, tax, or financial advice, and should not be relied upon as a substitute for advice tailored to your specific circumstances. While we take care to ensure the content is accurate and up to date at the time of publication, legislation, tax rates, thresholds, and compliance requirements in Ireland can change.
