How is Capital Gain Tax calculated in Ireland?

Working with Irish taxpayers to reduce their CGT liability compliantly is a key objective of any self-respecting accountant. Here, we look briefly at what Capital Gains Tax in Ireland is, who needs to pay it, and what the rates are. We identify some of the exemptions and reliefs that may apply, like retirement relief. Towards the end there’s explanation of how to calculate, file a return, and pay CGT.

What is Capital Gain Tax Ireland and who pays it?

Residents of Ireland pay CGT on profits from the sale of assets and worldwide gains. Non-residents with land and property in the Republic of Ireland must also pay CGT.

Anyone liable for CGT in Ireland should aim to make the most of their €1,270 personal CGT allowance (after deduction of any losses) each tax year.

This tax can be complicated to navigate compliantly. An accountant can make sure you benefit from every CGT allowance, deduction, relief, and exemption.

Capital Gains Tax Rates Ireland

– Standard rate 33%
– Venture capital fund 12.5% (companies); 15% (individuals/partners)
– Foreign life policies and investments) 40%
– Some windfall gains 80%

See the full list of what Capital Gains Tax is and is not due on at Revenue website.

What do the Irish public think about Capital Gain Tax Ireland?

According to The Irish Times , the rules around Capital Gains Tax in Ireland are “confusing”; you “could easily get caught out”.

– 57% of Irish taxpayers say that the CGT rules need simplifying.
– Nine in ten Irish taxpayers say that the rules around profits on property sales should be overhauled.
– Many are unaware that on the sale of a family home a CGT return must still be filed to claim the CGT exemption for the primary residential property.

Tax-planning to reduce your CGT bill

Tax-planning and CGT complement each other. For example:

– Joint ownership with a spouse or civil partner could double your CGT allowance.
– Postpone a sale (e.g. of a property) to the following tax year if your annual CGT allowance is already spent.
– Own more than one property? Possibly nominate the most valuable one as your main residence.
– Make the most of “allowable losses” and deductions (expenses that add value to the asset) as well as reliefs, and exemptions.
– Consider reducing CGT on sales of shares in Ireland by selling some shares each tax year to give a gain of €1,270 (annual CGT allowance). Money Guide Ireland suggests buying back the shares just sold to retain ownership of them, even though this might activate stamp duty at 1%.

Other ways to reduce CGT

Indexation relief

You can only claim indexation relief on assets you owned before 2003; if the cost occurred in 2003 or later, you can can’t claim it.

Use the Revenue indexation table to work out the allowable expense you can offset against the gain in the correct year.

Retirement relief

Retirement relief allows business owners to reduce or sometimes eliminate CGT. As the Business Post highlights, planning is key to keeping Irish family-owned businesses solvent and within the family fold.

Retired owners of family businesses aged between 55 and 70 (up from 65 in 2025) qualify for this relief.

Once age 70 (under current rules), there is a €3 million cap on the value of any business transferred by the owner to their children. Any gains over the cap will be subject to 33% CGT.

CGT calculation and filing a return

All chargeable CGT gain(s) must be calculated for the whole tax year. Add all the gains together and then deduct any losses.

The Capital Gains Tax calculation is based on:

– The current market value;
– The purchase price;
– Expenses: maintenance, restoration, or improvement;
– The threshold or rules set by government at the time of sale.

Taking the current market value of the asset, subtract the purchase price and any expenses incurred. The amount of CGT due will depend on what the asset is and identifying any applicable “allowable losses”, reliefs, exemptions, and allowances.

Include all gains and other applicable information on your return. To file a CGT return you can either fill out the CGT section of the Income Tax Return (Form 11)  or complete Form CG1.

The Ireland Capital Gains Tax Calculator allows free online calculations for residents and non-residents who have accrued income from Capital Gains in Ireland.

Capital gains tax, property, and the seven-year rule

Calculating capital gains tax on property in Ireland depends on the gain made on the sale and whether it’s the owner’s main residence.

There’s a partial CGT relief if the property has been owned by the same person for more than seven years. Divide the number of years you’ve owned the property by seven to work out the relief.

See more on the Revenue website.

Reporting CGT and payment due dates

A tax return for CGT must be filed by 31 October of the year after you sold the asset. This means you must either:

– Pay Capital Gains Tax by 15 December of the same year (for disposals made in December the deadline is 31 January).
– File a tax return for CGT by 31 October of the following year.

Date property sold	Payment due
1 January–30 November	15 December (of the same year)
1–31 December	31 January (of following year)

How do I pay capital gains tax in Ireland?

CGT can be paid online via the Revenue website or at myAccount. You must be registered for CGT Ireland to be able to pay online. You can register here with your tax registration number.

FAQs

Can I avoid paying CGT on a second home?

The rules are strict when it comes to CGT on second homes in Ireland. Registering the more valuable of the two homes as your main residence for the purposes of CGT could provide a solution. However, consulting an accountant beforehand would be advisable.

Do I have to pay CGT on inherited property?

CGT is not due on an inheritance until you decide to sell the asset bequeathed to you. The value of a home will be included in the estate inventory. This means that inheritance tax could be due instead.

When you inherit a property and sell it without ever living in it, you could be liable for CGT. The potential amount owed is based on the property’s value at the owner’s death and the date the beneficiary sold it. The seven-year rule could be applied to partially avoid this.

Can I avoid capital gains tax in Ireland as a non-resident?

There are various legal and compliant ways to avoid CGT if you’re non-resident in Ireland. Some of the legal ways have been discussed here, but in general, non-residents in Ireland who make a profit on land or property they own or do business in Ireland from which they make a gain will be liable for CGT within the rules as a resident of Ireland would be.

Outbooks is a leading virtual bookkeeping and accounting services provider across the Ireland, USA, UK, Australia & more, delivering offshore outsourcing services to accountants. We publish our blogs to inform the accountancy firms we serve and their clients. Outbooks dedicated team of tax experts has extensive experience in CGT calculation in Ireland, which we direct to helping accounting firms ensure their clients manage CGT compliantly.