Capital Gains Tax (CGT) in Ireland applies when you sell or dispose of an asset – such as property, shares, or a business and make a profit. The standard CGT rate in Ireland is 33% and it applies to the gain (your profit), not the total sale price.
Every individual in Ireland is entitled to an annual CGT exemption of €1,270. This means only the gain above this threshold is taxed. With careful planning using reliefs like Principal Private Residence (PPR) exemption, retirement relief and loss offset you can significantly reduce your CGT liability.
This guide covers everything you need to know about capital gains tax in Ireland, including:
- The current CGT rates (2026)
- How to calculate CGT step by step
- Exemptions and reliefs available
- How to reduce your CGT bill legally
- Payment and filing deadlines
- Worked examples for property, shares and business disposals
All figures are based on current Revenue.ie guidance and apply to the 2025/2026 tax year.
What is Capital Gains Tax in Ireland?
Capital Gains Tax (CGT) in Ireland is a tax on the profit you make when you dispose of a chargeable asset. A disposal includes selling, gifting, exchanging, or transferring an asset. CGT is administered by the Revenue Commissioners.
CGT applies to the gain, not the full proceeds. If you bought shares for €10,000 and sold them for €15,000, your gain is €5,000 and only that €5,000 (less your €1,270 exemption) is subject to tax.
Who Pays CGT in Ireland?
Irish tax residency determines your scope:
- Irish Residents (present in Ireland 183+ days per year): Liable for CGT on worldwide gains from Irish and overseas assets.
- Non-Residents: Liable for CGT on gains from Irish-situated assets only primarily land, buildings and mineral rights.
- Companies/Trusts: Also liable for CGT, generally at 33%, with specific additional rules.
What Assets Are Subject to CGT?
Chargeable assets include:
- Land and property (investment property, second homes, development land)
- Shares and securities (Irish and foreign)
- Business assets
- Cryptocurrency
- Foreign assets (for Irish residents)
Note: CGT does not apply to your principal private residence, personal vehicles, lottery winnings, Irish government securities, personal chattels valued below €2,540 and assets transferred between spouses or civil partners.
CGT vs Capital Acquisitions Tax (CAT): What’s the Difference?
CGT applies when you sell an asset and make a profit. Capital Acquisitions Tax (CAT), also known as inheritance tax or gift tax, applies when you receive a gift or inheritance. They are separate taxes, though a disposal can sometimes trigger both (e.g., selling an inherited property).
CGT Rates Ireland 2026
The standard CGT rate in Ireland is 33%, unchanged since 2012. This applies to most chargeable gains for both individuals and companies.
CGT Rates Table 2026
Here’s a clear table of capital gains tax rates Ireland for individuals and companies:
| Gain Type | Rate (Individuals) | Rate (Companies) | Notes |
|---|---|---|---|
| Standard gains (property, shares, etc.) | 33% | 33% | Default rate |
| Entrepreneur Relief (qualifying business) | 10% | N/A | Lifetime limit: €1 million |
| Venture capital fund gains | 15% | 12.5% | Qualifying investments |
| Foreign life policies / offshore funds | 40% | 40% | Deemed disposal rules apply |
Source: Revenue.ie, always verify against current Finance Act for any Budget-year changes.
CGT Exemptions and Reliefs in Ireland
Every individual in Ireland is entitled to an annual CGT exemption of €1,270. This is deducted from your net chargeable gain before tax is calculated.
Important rules:
- The exemption cannot be carried forward – unused portions are lost at year-end
- Each spouse/civil partner has their own €1,270 exemption
- It cannot be transferred between individuals
Principal Private Residence (PPR) Exemption
Your main home is fully exempt from CGT provided it was your only or main residence for the entire period of ownership. The exemption covers the dwelling and grounds up to 0.4 hectares (approximately 1 acre).
Partial PPR relief applies if:
- You rented out part or all of the property during ownership
- You used part of the property for business purposes
Partial relief formula: (PPR periods ÷ Total ownership period) × Total gain
Note: Even if no CGT is due, you must still file a CGT return to formally claim PPR exemption.
Retirement Relief
Business owners aged 55 or over may qualify for full CGT relief when disposing of qualifying business assets or shares. Key parameters:
- Full relief available up to a lifetime limit of €3 million (for disposals to children)
- Relief tapers for those aged 70+
- Careful succession planning is essential to meet the qualifying conditions
Entrepreneur Relief
A reduced CGT rate of 10% applies to qualifying gains from the disposal of business assets or shares, up to a lifetime limit of €1 million. Conditions include minimum holding period and active trading requirements.
Indexation Relief (Pre-2003 Assets Only)
Indexation relief allows you to uprate the original cost of an asset to reflect inflation, reducing your taxable gain. This relief only applies to assets acquired on or before 31 December 2002.
You apply the Revenue Commissioners’ published CGT indexation multiplier to your original base cost. Assets purchased after 2002 do not qualify. For current multipliers, see: https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/cgtmult.pdf
Example: An asset bought in 1995 for €100,000 may have an indexed cost of €130,000 today saving you CGT on €30,000 of the gain.
Capital Loss Relief
Capital losses can be:
- Offset against gains in the same tax year
- Carried forward indefinitely to future tax years
- Applied against the gain before the €1,270 annual exemption is deducted
Losses cannot be carried back to a prior year. Keep detailed records of all loss-making disposals.
Essential CGT Exemptions and Reliefs in Ireland
CGT exemptions Ireland and reliefs can wipe out or slash your tax bill don’t miss them. These reduce chargeable gains before applying CGT rates Ireland 2026. Key ones include full exemptions for your home and targeted reliefs for businesses or inflation. Always document eligibility; file a return even for exempt disposals.
Top CGT Reliefs and Exemptions
Here’s a breakdown of the most valuable:
- Principal Private Residence (PPR) Relief: No CGT on your main home if it’s been your only/major residence. Covers gardens up to 0.4 hectares. Partial if rented out prorate by occupancy periods. File Form CG1 to claim (even if zero tax).
- Retirement Relief: Business owners aged 55+ get full exemption on gains up to €1.27 million when transferring to kids/family. Tapers after; €3 million lifetime cap post-70. Expanded in Budget 2025, planning ahead saves family firms.
- Indexation Relief: Adjusts pre-2003 asset costs for inflation using Revenue’s indexation table. Frozen post-2002, no help for newer buys.
- Loss Relief: Deduct capital losses from current/prior gains, carrying forward indefinitely. Negligible value threshold (€2,540) ignores small loss-making chattels.
- Entrepreneur Relief/Holdover Relief: 10% rate on qualifying business shares (lifetime €1M limit); defer gains on gifts to kids.
- Other Exemptions: No CGT on ISA-like schemes, lottery wins, or personal chattels under €2,540.
How to Maximise Them
Combine reliefs, e.g., index a pre-2003 property gain, offset losses, then apply PPR. Outbooks accountants uncover hidden reliefs; DIY risks audits.
How to Calculate Capital Gains Tax in Ireland (Step-by-Step)
CGT Calculation Formula
Taxable Gain = Disposal Proceeds − (Base Cost + Acquisition Expenses + Enhancement Expenditure + Indexation) − Capital Losses − €1,270 Annual Exemption
CGT Due = Taxable Gain × CGT Rate (e.g., 33%)
Step-by-Step CGT Calculation Guide
Step 1: Determine your disposal proceeds Use the actual sale price. For gifts or non-arm’s length transactions, use the market value at the date of disposal.
Step 2: Calculate your base cost This is the original purchase price plus all allowable acquisition costs: legal fees, stamp duty, surveyor fees and other incidental costs of purchase.
Step 3: Add enhancement expenditure Include capital improvements that increase the asset’s value (e.g., an extension on a property). Routine maintenance and repair costs are not allowable.
Step 4: Apply indexation (pre-2003 assets only) If the asset was acquired on or before 31 December 2002, multiply the base cost by the relevant Revenue indexation factor to adjust for inflation.
Step 5: Deduct capital losses Subtract any allowable capital losses from the current tax year first, then any losses carried forward from prior years.
Step 6: Deduct the annual exemption Subtract €1,270 (the annual CGT exemption) from the remaining gain.
Step 7: Apply the CGT rate Multiply the taxable gain by the relevant rate – usually 33%.
Worked Example 1: CGT on Property Sale
Scenario: You bought a Dublin investment property in 2000 for €200,000. Selling costs were €5,000 at purchase. You sold in 2026 for €450,000, with €10,000 in estate agent and legal fees.
| Amount | |
|---|---|
| Sale proceeds | €450,000 |
| Less: sale costs | −€10,000 |
| Net proceeds | €440,000 |
| Original cost (2000) | €200,000 |
| Acquisition costs | €5,000 |
| Total base cost | €205,000 |
| Indexed cost (×1.212 approx.) | €248,460 |
| Gross gain | €191,540 |
| Less: capital losses | €0 |
| Less: annual exemption | −€1,270 |
| Taxable gain | €190,270 |
| CGT at 33% | €62,789 |
Worked Example 2: CGT on Shares
Scenario: You bought 1,000 shares in an Irish company in 2015 for €8,000 (including broker fees). You sold in 2026 for €14,500, with €200 in selling costs.
| Amount | |
|---|---|
| Sale proceeds | €14,500 |
| Less: selling costs | −€200 |
| Net proceeds | €14,300 |
| Base cost | €8,000 |
| Gross gain | €6,300 |
| Less: annual exemption | −€1,270 |
| Taxable gain | €5,030 |
| CGT at 33% | €1,660 |
(Note: Indexation does not apply as the shares were purchased after 2002.)
CGT Calculator Ireland
For a quick CGT estimate, you can use the free iCalculator Ireland CGT tool at ie.icalculator.com. Input your acquisition cost, sale proceeds and disposal date to get an instant estimate.
However, bear in mind a standard CGT calculator may not account for:
- Indexation relief on pre-2003 assets
- Partial PPR relief on mixed-use properties
- Capital losses carried forward from prior years
- Retirement Relief or Entrepreneur Relief
For complex disposals, contact Outbooks’ self-assessment tax return service for a full, accurate CGT calculation.
How to Reduce Capital Gains Tax in Ireland Legally?
Once you understand the rules, you can reduce CGT Ireland liability legally with smart timing and structuring. These CGT tax planning Ireland strategies work best when planned before you sell, not after the contract is signed.
1. Use Your €1,270 Annual Exemption Every Year
The exemption cannot be carried forward – use it or lose it. Consider staggering disposals across two tax years. For example, sell part of a shareholding in late December and another tranche in January to use two consecutive years’ allowances.
2. Transfer Assets to a Spouse or Civil Partner
Transfers between spouses are CGT-neutral. Moving an asset into joint names before disposal effectively doubles the annual exemption to €2,540. It may also allow a lower CGT liability if one spouse has unused losses.
3. Offset Capital Losses
Strategically crystallise losses from underperforming assets in the same tax year as a large gain. Losses must be genuine and commercial artificial transactions to manufacture losses will not be allowed by Revenue.
4. Time Your Disposal Strategically
The date of disposal, not the date of payment, determines which tax year the gain falls into. If your annual exemption is already used for the current year, consider deferring a sale into the next tax year to access a fresh €1,270 exemption.
5. Claim Principal Private Residence Relief
Maximise the period in which a property qualifies as your main residence. If you own two properties, you can nominate the more valuable one as your PPR. Consult a tax adviser before making this election.
6. Plan Early for Retirement or Entrepreneur Relief
Both reliefs require specific qualifying conditions to be met over time. Retirement Relief requires the business owner to be 55+; Entrepreneur Relief requires minimum 5% share ownership and active trading. Planning years in advance significantly increases the chance of full qualification.
7. Make Use of Indexation on Pre-2003 Assets
If you still hold an asset acquired before 2003, ensure you apply the correct Revenue indexation multiplier when calculating your gain. This is frequently missed and can reduce your taxable gain substantially.
Capital Gains Tax on Property in Ireland
Property disposals often trigger the biggest CGT property Ireland bills, but reliefs make a huge difference. Unlike shares, capital gains tax on property Ireland hinges on usage investment vs. personal home and residency status. Calculate using the formula discribed above, always factoring location (Irish situs for non-residents).
PPR Exemption on Your Main Home
Your principal private residence is fully exempt from CGT. The exemption applies to the dwelling and up to 0.4 hectares of grounds. To qualify, the property must have been your only or main residence for the entire ownership period. A CGT return must still be filed to formally claim this exemption.
CGT on Investment Property and Buy-to-Let
No PPR relief applies to investment or rental properties. Your full gain (proceeds minus base cost and allowable expenses) is taxed at 33%. Allowable deductions include the original purchase price, legal fees, stamp duty and capital improvement costs.
Non-residents selling Irish property must be aware that the purchaser is required to withhold 15% of the gross sale proceeds and remit this to Revenue. Non-residents must register with Revenue and file a return to claim any refund of over-withheld tax.
CGT on Inherited Property
There is no CGT on an asset at the point of inheritance. The beneficiary’s base cost is set at the market value of the property at the date of death. CGT only arises if the beneficiary later sells the property for more than this base value. Note: Capital Acquisitions Tax (CAT/inheritance tax) may apply separately on receipt of the inheritance.
CGT on a Second Home
A second home does not qualify for PPR exemption and is fully subject to CGT at 33% on any gain. If you own two properties, you can nominate one as your PPR but this election must be made within two years of acquiring the second property.
CGT Filing and Payment Deadlines Ireland
Timely CGT payment deadlines Ireland and filing prevent penalties (up to 100% of tax + interest). Two key steps: pay first, then report. Deadlines are strict use Revenue’s Online Service (ROS) or myAccount for ease.
CGT Payment Due Dates
Pay CGT within 15 days of disposal awareness, but calendar rules apply:
| Disposal Period | Payment Deadline |
|---|---|
| 1 January – 30 November | 15 December (same year) |
| 1 December – 31 December | 31 January (following year) |
Important: CGT must be paid before the return is filed. Late payment attracts interest at approximately 0.0219% per day (8% per annum), plus potential surcharges.
Filing a CGT Return
The CGT return is due by 31 October of the year following the disposal.
- Form CG1: For individuals with CGT obligations only (not subject to income self-assessment)
- Form 11: For self-assessed taxpayers includes a CGT section
Returns can be filed via Revenue’s Online Service (ROS) or myAccount. Paper returns are accepted but electronic filing is strongly recommended.
Even if no CGT is due (e.g., because of PPR exemption), a return must be filed for the year of disposal.
Step-by-step:
- Register for CGT with Revenue (if not already registered)
- Gather all disposal documentation: contracts, valuations, receipts for improvement works
- Calculate your gain/loss using the steps above
- Pay any tax due by the appropriate deadline (15 December or 31 January)
- File your CGT return by 31 October of the following year
Missed something? Amend within 4 years. Outbooks handles this seamlessly.
Get Expert CGT Help from Outbooks Ireland
Capital gains tax in Ireland can become complex quickly, particularly when indexation, partial PPR relief, multiple disposals, or business reliefs are involved. Errors cost money through missed reliefs or Revenue penalties.
Outbooks provides specialist self-assessment tax return support and CGT calculation services for Irish individuals and businesses. Our team handles:
- Full CGT calculations (property, shares, business assets)
- Form CG1 and Form 11 filing via ROS
- Retirement Relief and Entrepreneur Relief assessments
- Loss offset and indexation optimisation
- Non-resident CGT compliance and withholding tax reclaims
Consult a qualified outsourced accountant to optimise your CGT strategy, avoid pitfalls, minimise liability legally and focus on growth. Outbooks offers specialised CGT support for Irish taxpayers; contact us today for tailored advice.
Ready to optimise? Contact Outbooks today at +353 21 2069255 or info@outbooks.com for a expert CGT review.
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