Capital gains tax (CGT) in Ireland explained

Are you planning to sell your home, a second property, an investment, or collectibles? You might have to pay capital gains tax (CGT) on any profit you make. Read on to find out more about capital gains tax in Ireland and how to calculate and pay it.

The information provided here is for informational and educational purposes only and does not constitute tax advice. You should consult with a qualified tax professional or adviser regarding your individual tax situation. Tax laws and regulations are complex and subject to change, and the information provided may not be applicable to your specific circumstances. We are not liable for any tax decisions or actions you take based on this information.

Capital gains tax is a tax you pay on any profit made when you dispose of an asset, such as property, that has increased in value. Disposal in this sense not only means selling the asset; CGT can also apply when you gift an asset, exchange it, or receive compensation for it. In Ireland, CGT is only due on the profit you make, not on the full amount you sell or dispose of your asset for.

Example: If you purchase an antique vase for €10,000 and later sell it for €30,000, you’ve earned €20,000. This €20,000 is known as the chargeable gain and is subject to some deductions.

In Ireland, CGT applies on chargeable gains from:

• Property (including residential and commercial buildings)

• Land

• Shares in companies

• Collectibles, including antiques, art, and jewellery

• Gifts and inherited assets (taxed based on market value when received)

• Investment funds and life policies subject to CGT

If you don’t live in Ireland, you may still have to pay CGT if you dispose of Irish property, land, or certain business assets based in Ireland. This also includes shares in a company if most of the company’s value comes from Irish property or land.

Capital gains tax in Ireland only applies to profit you make on an asset. However, because each individual has an annual tax-free allowance of €1,270, if your total gains for the year fall below that, you won’t owe any CGT. Married couples and civil partners who jointly own an asset can combine their allowances (as long as both have made a gain), but the allowance itself is not transferable.

If you want to learn about other tax benefits available to couples, read more in our guide to marriage tax credits.

Property you sell in Ireland may incur capital gains tax on profits made. However, if the property you’re selling is your main home, you may qualify for principal private residence (PPR) relief, which can reduce or eliminate the CGT you owe. Any other property or a second home that you sell is subject to capital gains tax.

For the purposes of CGT, a property is classed as your main residence if:

• You’ve lived in it as your main home during the period you’ve owned it (or for a substantial part of it).

• You used the entire property as your home, meaning it wasn’t let out or used (even partially) for business purposes.

If these points apply, you may qualify for principal private residence relief, and you will not have to pay CGT when you sell the property.

There are restrictions on your claim if you’ve used any part of your property for business or rental purposes. For example, if you used 75% of it as your home, and 25% for your business, you may only be able to claim for relief on the part used as your home.

You can find out if you’re eligible for principal private residence relief here.

Once you’ve exceeded your annual tax-free amount, you’ll have to pay capital gains tax. When selling, gifting, or exchanging an asset, the standard CGT rate in Ireland is 33% as of 2025.

Other types of gains have different CGT rates. For example, you can expect to pay the following:

• 40% for gains from foreign life policies and investments

• 15% for gains from venture capital funds (individuals or partners)

• 12.5% for gains from venture capital funds (companies)

Capital gains tax on transfers of agricultural land in Ireland is also set at 33%, but certain stamp duty reliefs, such as consanguinity relief and farm consolidation relief, can reduce upfront costs for those eligible.

1. Note the original purchase price and the sale price of the asset.
   Calculate any allowable expenses—costs that added value or came up during purchase or sale (e.g. estate agent fees, solicitor fees, improvements).
2. Calculate your chargeable gain:
   Chargeable gain = selling price – (purchase price + allowable expenses)
3. Apply indexation relief (if eligible):
   If you bought the asset before 2003, you might qualify for indexation relief (also known as inflation relief) to adjust your purchase price for inflation. Check the CGT indexation table, and multiply the cost by the indexation factor for the year you incurred the cost. This can also be added to your allowable expenses and reduce your taxable gain.
4. Subtract any capital losses from the same tax year.
5. Subtract the annual CGT exemption (€1,270).
6. Multiply your taxable gain by the applicable CGT rate.

If you acquired a property between December 2011 and December 2014 and owned it for more than seven years, you may be entitled to partial relief from CGT.

To find out what you may be entitled to, divide seven by the number of years you owned the property. This will give you the proportion of the gain that’s exempt. For example, if you owned a property for 10 years, then 7/10ths of the gain would be exempt from CGT.

This relief no longer applies to properties bought after 31 December 2014.

In Ireland, the tax year is divided into two CGT periods:

• 1 January to 30 November

• 1 December to 31 December

You can pay your capital gains tax online in Ireland via Revenue online or myAccount. You must be registered for CGT Ireland. You can register here with your tax registration number.

To make a CGT return:

• Complete the CGT section of the Income Tax Return (Form 11), or

• If you don’t need to make an income tax return, you can complete Form CG1.

There is no CGT due when you inherit a property (in other words, inheritance isn’t treated as a disposal). However, inheritance tax (Capital Acquisitions Tax) may apply depending on the value and your relationship to the deceased.If you sell the property later, you may have to pay capital gains tax on the increase in value between the date of inheritance and the date of sale.

With careful planning, some people may reduce their capital gains tax liability. Common strategies include:

1. Joint ownership with your spouse: Each person has their own CGT allowance. If you both own the asset, you can each use your exemption.

2. Timing the sale: If you’ve used up your CGT allowance, you could consider postponing the sale to the next tax year.

3. Nominating a main residence: If you own multiple homes, you may be able to nominate one for CGT relief—subject to strict rules.

4. Deducting eligible costs: Include all allowable expenses, such as legal and estate agent fees, to reduce your gain.

Capital gains tax in Ireland is complicated, so it’s best to speak to a tax adviser before making any decisions.

Most of the changes announced in Budget 2025 focus on reliefs for business owners and start-up investors:

• The retirement relief upper age limit of 70 remains

• CGT relief for angel investors is being expanded, raising the lifetime limit on gains from €3 million to €10 million

• The EII scheme, start-up relief, and start-up capital incentive are extended until the end of 2026

Exit tax applies to gains from certain investment funds, such as UCITS, ETFs, and life assurance policies. It is separate from CGT and is charged at a rate of 41%. 

Instead of filing and paying it yourself, exit tax is usually automatically deducted by Irish-based funds. It can be triggered even if you haven’t sold your investments. For example, it is due after eight years of holding the fund.

Exit tax doesn’t apply to pension investments, approved charities, or direct shareholdings. These are usually subject to CGT instead.

If you’ve just sold an asset and paid capital gains tax, you might want to consider placing your profit in a lump sum savings account.

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