Capital Gains Tax (CGT)

Irish Capital Gains Tax (CGT) applies to profits made from selling assets. The rules vary depending on your residency and domicile status.

Try out our CGT calculator or keep reading to learn more about CGT.

Residency, Ordinary Residence, and Domicile: How They Affect CGT

• If you're an Irish resident, ordinarily resident, and Irish domiciled, you'll pay CGT on gains from selling assets anywhere in the world.
• If you're a resident or ordinarily resident but not domiciled in Ireland, you'll pay CGT on gains from selling assets located in Ireland and gains from selling assets outside Ireland if you bring the proceeds into Ireland.
• If you're neither a resident nor ordinarily resident, you'll only pay CGT on gains from selling specific Irish assets, like land, buildings, or assets used in an Irish business. These gains are taxable regardless of your residency or domicile.

Calculating Capital Gains Tax

CGT is calculated on the difference between the sale price and the original cost of the asset.

• You can deduct costs related to buying and selling the asset, such as legal fees and stamp duty.
• The original cost is adjusted for inflation (indexation), but only for periods of ownership up to December 31, 2002.
• The first €1,270 of taxable gain each year is tax-free.
• The CGT rate is 33% (since December 6, 2012; it was 30% before).

Capital Losses

• Capital losses can offset gains in the same year or be carried forward to future years.
• Losses cannot be deducted from regular income.
• Losses on selling CGT-exempt assets, like your main home, are not allowed.
• Indexation cannot create or increase a loss.
• Losses arising from non-domiciled individuals selling assets outside of Ireland cannot be offset against other gains.

Foreign Currency

• If asset sales or costs are in a foreign currency, they must be converted to euros using the exchange rate at the time of the transaction.

Disposals Before Moving to Ireland

• The Irish tax authorities usually don't tax gains from sales made before you move to Ireland. However, this is a concession, so it's always best to get professional advice.

Payment and Reporting

• CGT on sales from January 1 to November 30 is due by December 15 of that year.
• CGT on sales from December 1 to December 31 is due by January 31 of the following year.
• All asset sales and purchases must be reported on your annual tax return.