If you’ve recently sold a property, gifted an asset, or made a profitable investment, you may be wondering: What is Capital Gains Tax? In Ireland, Capital Gains Tax (CGT) applies when you dispose of an asset and make a profit or “gain” from that transaction. Disposing of an asset doesn’t only mean selling it, it can also include gifting, exchanging, or receiving insurance or compensation for it. Understanding how much is capital gains tax in Ireland, how to calculate it, and how to pay Capital Gains Tax in Ireland is essential to avoid unexpected tax bills.
This article explains what is Capital Gains Tax Ireland, who must pay it, what exemptions apply (including the 7-year Capital Gains Tax exemption), and the importance of seeking professional advice.
Capital Gains Tax (CGT) is a tax you pay on the profit you make when disposing of an asset. The chargeable gain is the difference between the amount you received and the amount you originally paid for the asset, minus any allowable expenses (like solicitor fees or improvement costs).
You may be liable for CGT when you:
CGT is not charged on the entire sale amount—only on the profit made, after deducting allowable costs.
The standard Capital Gains Tax rate in Ireland is 33%. However, there are exceptions:
These rates apply to the taxable gain after you’ve deducted any exemptions, reliefs, or allowable expenses.
Any individual (resident or non-resident), trust, or company who makes a chargeable gain must pay CGT. If you jointly own an asset, each person pays CGT on their share of the gain.
Non-resident individuals are only liable for CGT on:
There are several Capital Gains Tax Ireland exemptions. Some of the most important include:
Each individual has an annual CGT allowance: the first €1,270 of taxable gains in a tax year are exempt from CGT. Married couples or civil partners can each claim this allowance, but it cannot be transferred between you.
Transfers of assets between spouses or civil partners (including after separation or divorce under they are made under a Separation Agreement or a court order) are fully exempt from CGT.
If you sell your main home, you may be exempt from CGT. This exemption may also apply to:
Restrictions may apply depending on the duration and extent of your residence.
If you’re over 55 and selling a farm or business, Retirement Relief may reduce or eliminate your CGT bill, even if you’re not retiring.
Read more about Retirement Relief for Business Owners in this link
If you dispose of land or buildings bought between 7 December 2011 and 31 December 2014, and held them for at least 4 years, you may be eligible for partial or full relief:
You don’t pay CGT on gains from:
Many people ask: How do I calculate Capital Gains Tax?
1. Determine the sale price or market value (for gifts/inherited assets).
2. Subtract the purchase price.
3. Deduct allowable expenses, such as:
4. Apply any reliefs or exemptions (e.g., €1,270 personal allowance).
5. Multiply the remaining taxable gain by the appropriate CGT rate (usually 33%).
You must pay online through:
If you qualify for exemption from online filing, payments can be made via post using CGT Payslip From A or B or email the Payment Accounting section of the Collector-General’s Division.
You must file a return even if no CGT is due. The filing deadline is 31 October of the year following the disposal.
Forms can be filed via ROS or posted to your local Revenue office.
You can use capital losses to reduce your gains in the same tax year subject to certain exceptions. Unused losses can be carried forward to future years, but not back to previous ones.
You may need to pay CGT on the sale of a second home, investment property, or land. Always check if Principal Private Residence Relief applies.
Selling shares, whether in Irish or foreign companies, can trigger CGT. If the shares were inherited, your base cost is the market value at the date of inheritance.
Making informed financial decisions can be complex, especially when they involve tax implications, investment planning, and long-term financial goals. That’s why it’s essential to seek professional advice.
Before taking any action, make sure to get appropriate tax advice to understand the implications for your individual circumstances. Once your tax position is clear, Fairstone can support you in building a tailored financial plan that aligns with your goals and helps secure your financial future.
Book today a no-obligation financial planning consultation with Fairstone. Our expert advisers are here to guide you through each stage, ensuring your plan is both effective and tax-efficient.
Sources:
Related articles:
Retirement Relief for Business Owners
Wealth Management Strategies for Business Owners in 2025
Disclaimer:
Information as of 26/06/2025
This article does not constitute tax advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional, independent tax advice. Although endeavours have been made to provide accurate and timely information of the various source material, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
