Capital Gains Tax in Ireland, Explained

Capital Gains Tax applies when you dispose of an asset — typically by selling it — for more than it cost you. Here's how the Irish rules actually work, step by step.

What counts as a disposal

A disposal isn't just a sale. Gifting an asset, exchanging it, or even certain transfers to a trust can all trigger CGT, based on the asset's market value at the time. This guide focuses on the common case: selling property, shares or crypto for cash.

How the gain is calculated

• Start with your sale price (or market value, for a gift/transfer).
• Deduct your original purchase price.
• Deduct allowable costs: capital improvements (not routine repairs or maintenance) and costs of the disposal itself, like solicitor or auctioneer fees.
• The result is your capital gain — or loss, if the figure is negative.

Losses, the annual exemption, and the rate

Any capital losses you're carrying forward from previous years are deducted from this year's gain first. Then, each individual gets an annual exemption of €1,270 — the first slice of gains in a tax year that's tax-free. It can't be transferred to a spouse and is lost if you don't use it. Whatever remains is taxed at the standard CGT rate of 33%.

Reliefs worth knowing about

• Principal Private Residence (PPR) Relief — your main home is generally exempt from CGT, apportioned for any period it wasn't your main residence.
• Revised Entrepreneur Relief — a reduced 10% rate on qualifying gains from disposing of a business, up to a €1,500,000 lifetime limit.
• Transfers between spouses or civil partners are generally exempt from CGT at the time of transfer.