If you’ve ever sold a property, shares, or even a valuable piece of art in Ireland, the taxman may have a share in your profit. That’s capital gains tax (CGT) — a levy on the profit you make when you sell or dispose of an asset.
Standard CGT rate in Ireland: 33% ·
Annual tax-free allowance: €1,270 per person ·
Principal private residence exemption: Full exemption on sale of main home
Quick snapshot
- CGT rate is 33% for most assets (Revenue)
- Annual exemption is €1,270 per individual (Revenue)
- Principal private residence is fully exempt (Citizens Information)
- Exact liability depends on individual reliefs and losses
- 7‑year rule amount varies by age and asset value
- Gains from Jan‑Nov: pay by 15 December same year (Nathan Trust)
- Gains in December: pay by 31 January following year (Nathan Trust)
- File annual CGT return (Form CG1) by 31 October
- Pay on time or face surcharges and interest
The table below summarises the core rules every Irish taxpayer needs to know.
| Item | Value / Rule |
|---|---|
| Standard CGT Rate | 33% (2025) |
| Annual Tax‑Free Allowance | €1,270 per individual |
| Principal Private Residence | Fully exempt on sale |
| CGT on Inherited Property | Payable on post‑inheritance gain |
| Retirement Relief | Full or partial relief for business/farm transfers |
| Payment deadline (Jan‑Nov disposals) | 15 December same year |
| Payment deadline (December disposals) | 31 January following year |
What is capital gains tax?
Capital gains tax (CGT) is a tax on the profit you make when you sell, gift, or otherwise dispose of an asset. Only the gain — the difference between what you paid for the asset and what you received — is taxed, not the total sale price. Revenue (Irish tax authority) states that the standard CGT rate is 33% for most assets.
What is capital gains tax on property?
Property is one of the most common triggers for CGT. If you sell a second home, a rental property, or land that is not your main residence, you pay CGT on the increase in value from the date you bought it. The Citizens Information (official Irish government information service) confirms that your principal private residence is fully exempt, but any development value on land attached to the home may still be taxable.
What is capital gains tax in Ireland?
Ireland’s CGT system is relatively straightforward: a single rate of 33% applies to most chargeable gains, with a few exceptions. Gains from venture capital funds are taxed at 15% for individuals and partnerships, or 12.5% if the fund is a company, according to the CCPC (Consumer Protection Commission Ireland). Foreign life policies and foreign investment products face a higher rate of 40%, and an Exit Tax of 38% applies to certain collective investments.
Most Irish taxpayers face the 33% rate, but the 40% and 38% rates on foreign products create a real trap for investors who don’t check the product’s tax treatment before buying.
The pattern: three different rates depending on asset type, with the standard 33% covering the vast majority of residential property and share disposals.
How much tax will I pay on a capital gain?
The calculation is simple in principle: take the sale price, subtract the purchase price and certain allowable costs (legal fees, stamp duty, improvements), deduct your annual exemption, and apply the 33% rate. Revenue (Irish tax authority) provides a CGT calculator on its website to help you work through the numbers.
How much capital gain is tax-free in a year?
Every individual in Ireland has an annual CGT exemption of €1,270. Revenue states that if your total chargeable gain is less than €1,270, no CGT is due. Married couples each have their own €1,270 allowance, but they cannot transfer unused portions to each other, as Noone Casey (Irish tax advisory firm) notes. Gains above that are taxed at 33%.
If you have a gain of €2,000, you only pay CGT on €730 (€2,000 minus €1,270). That’s €240.90 instead of €660 — a real saving for timing your disposals across multiple years.
The catch: the exemption is use-it-or-lose-it each year, so spreading large gains across two tax years can double the tax-free portion.
Who is exempt from capital gains tax?
Several categories of assets and situations are fully or partially exempt from CGT in Ireland. The most important for most people is the principal private residence exemption — the sale of your main home is entirely free of CGT. Other notable exemptions, detailed by Noone Casey, include:
- Gains on Government Securities or Savings Certificates
- Transfers of assets between spouses living together
- Sale of tangible moveable property (e.g., vehicles, clothing, machinery) — exempt if proceeds do not exceed €2,540
- Personal injury compensation payments
- Work of art loaned to an approved gallery or museum (if acquisition value did not exceed €31,740), as Nathan Trust (financial services firm) notes
What is the 7 year rule for capital gains in Ireland?
The “7 year rule” is shorthand for retirement relief. If you are aged 55 or over (the relief was updated in recent budgets), you may be able to dispose of a business or farm with reduced or zero CGT. The relief amount depends on age, value, and whether the transfer is to a child. Revenue publishes specific thresholds: for those aged 55–65, full relief on the first €750,000 of qualifying assets, with 50% relief on the next €500,000. Over 65, the thresholds increase.
The implication: for family business owners approaching retirement, careful planning around the 7 year rule can eliminate CGT entirely on the transfer to the next generation.
Do you pay capital gains tax on inherited property?
Inheriting property does not trigger CGT in Ireland. Instead, Capital Acquisitions Tax (CAT) may apply. However, if you later sell the inherited property, CGT becomes due on the increase in value from the date you inherited it to the sale date. Citizens Information explains that if the property becomes your principal private residence, the main residence exemption can apply to the gain from that point onward.
What is the 6 year rule for capital gains tax?
The “6 year rule” in Ireland relates to the deemed disposal rules for individuals who move abroad. If you become non-resident for tax purposes but sell an Irish asset within 6 years of leaving, you may still owe CGT in Ireland. Nathan Trust notes that the rule prevents residents from escaping CGT by relocating temporarily before selling property or shares.
The trade-off: if you plan to emigrate and sell an Irish asset after more than 6 years, Ireland generally loses taxing rights — but the new country of residence may then tax the gain.
Non-residents selling Irish property after 2014 are now subject to a withholding requirement: the buyer must deduct 15% of the sale price and remit it to Revenue unless the seller has a CGT clearance letter.
How to avoid paying capital gains tax in Ireland?
While you can’t legally “avoid” CGT in the sense of evading it, Ireland’s tax code provides several reliefs and strategies to reduce or eliminate the tax. Here’s a step-by-step approach for Irish residents.
- Check if the asset is exempt. Start with the principal private residence exemption — if the asset is your main home, you owe nothing. Other exemptions (listed above) may apply to government securities, small chattels, or art loans.
- Use your annual exemption. The €1,270 tax-free allowance applies each year. If possible, split disposals across two tax years to double the allowance.
- Offset capital losses. If you have made losses on other assets in the same year (or unused losses carried forward), you can deduct them from your gains. Revenue allows losses to be carried forward indefinitely.
- Claim allowable costs. Include legal fees, estate agent commissions, stamp duty paid at purchase, and the cost of significant improvements. These reduce your chargeable gain.
- Apply retirement relief if eligible. If you are 55+ and disposing of a business or farm, retirement relief can wipe out CGT entirely up to certain limits.
- Consider timing. Delay the sale to a new tax year if you’ve already used your €1,270 exemption. Also, be aware of payment deadlines — disposing late in December gives you until 31 January to pay, while a November disposal requires payment by 15 December.
- For inherited property, make it your home. If you inherit a property and move into it as your main residence, the principal private residence relief can apply to gains from the date you move in, potentially eliminating CGT when you eventually sell.
How to avoid capital gains tax on selling your house?
If the house is your principal private residence, the exemption is automatic. But if you have lived away and the property was rented out, partial relief applies — the gain is apportioned based on the period you lived there. Citizens Information notes that up to one year of absence for employment reasons can still be counted as residency, preserving the full exemption.
How to avoid capital gains tax in Ireland as a non-resident?
Non-residents are only liable for CGT on Irish land and property, not on shares or other assets (unless the shares derive their value from Irish land). Nathan Trust advises that non-residents selling Irish property must obtain a CGT clearance letter from Revenue before completion to avoid the 15% withholding. The 6-year rule means recent emigrants should check their liability if they sell within six years of leaving.
Confirmed facts
- CGT rate in Ireland is 33% for most assets.
- Annual exemption is €1,270 per person.
- Principal private residence is exempt from CGT.
- Inheritance itself is not subject to CGT, but subsequent sale may trigger it.
What’s unclear
- The exact CGT liability depends on individual circumstances, including available reliefs and losses.
- The 7‑year rule relief amount varies based on age and asset value.
What the authorities say
“Capital Gains Tax is charged on the capital gain or profit made on the disposal of an asset.”
— Citizens Information (official Irish government information service)
“CGT is a tax you pay on any capital gain (profit) made when you sell, gift or exchange an asset.”
— Revenue (Irish Tax and Customs)
For Irish property owners and investors, the CGT system is clear but unforgiving if you miss deadlines. With a 33% rate, every euro of allowable deduction or exemption matters. The smart approach is to plan disposals around your annual €1,270 allowance, keep records of all costs, and consult Revenue’s official calculator before you sell. For those approaching retirement, the 7‑year rule on business transfers can erase a tax bill that would otherwise run into six figures. For the average homeowner, the choice is straightforward: live in your property and the CGT vanishes; sell a second home and the 33% rate is almost certain — plan accordingly or pay the price.
aroundfinance.ie, gov.uk, fairstone.ie, taxsummaries.pwc.com
For a detailed breakdown of the current rates and exemptions, the Irish capital gains tax guide explains the 33% rate and key reliefs applicable to property and share disposals.
Frequently asked questions
What is the capital gains tax rate in Ireland?
The standard rate is 33% for most assets. Some exceptions apply, such as 15% for venture capital fund gains (individuals/partnerships) and 40% for foreign life policies. Revenue confirms the 33% standard rate.
How do I calculate capital gains tax on property?
Take the sale price, deduct the purchase price, allowable costs (legal fees, improvements), and the annual exemption of €1,270. Then multiply the remaining gain by 33%. Use Revenue’s CGT calculator for accuracy.
What is the annual CGT exemption limit?
€1,270 per individual per year. Gains below this threshold are tax-free. The allowance is non-transferable between spouses. Revenue states that no CGT is due if chargeable gains are under €1,270.
Can I offset capital losses against capital gains?
Yes. You can deduct allowable capital losses incurred in the same year or unused losses carried forward from previous years. Losses can be carried forward indefinitely. Revenue provides the rules on loss relief.
Do I pay capital gains tax on gifts?
Generally yes. Gifting an asset is treated as a disposal at market value, and CGT may be due on the gain. Transfers between spouses living together are exempt. Noone Casey details the spousal exemption.
What happens if I don’t pay CGT on time?
You will face interest on late payment and possibly a surcharge. The standard late filing surcharge is 5% of the tax due, up to a maximum. Nathan Trust warns that penalties can add up quickly.
Is there a CGT surcharge for late filing?
Yes. If you file your CGT return late, a surcharge of 5% of the tax due applies, increasing to 10% if the return is more than two months late. Interest also accrues on unpaid tax.
How does the 7‑year rule work for over 65s?
Retirement relief for those aged 55+ can reduce or eliminate CGT on the disposal of a business or farm. For those over 65, the relief thresholds are higher, and transfers to children may be fully relieved. Revenue publishes the specific limits.