Capital Gains Tax (CGT) in Ireland is an important consideration for anyone investing in Ireland, whether you’re dabbling in stocks, holding crypto, or selling property. In this post, we’ll break down what CGT is, the types of investments it applies to, and what events trigger a CGT liability.
What Is Capital Gains Tax (CGT) In Ireland?
Capital Gains Tax is a tax you pay on the profit (or “gain”) made from selling or disposing of an asset. In Ireland, the standard CGT rate is 33%.
It’s not the amount you sold the asset for that gets taxed — it’s the gain made, which is calculated as the difference between the sale price and the original purchase price (with certain allowable deductions like fees or improvement costs).
Types of Investments Subject to CGT
CGT applies to a wide range of assets, including:
🏠 Property
- Investment properties
- Land
- Holiday homes (Note: your main residence is generally exempt under Principal Private Residence Relief, if certain conditions are met.)
📈 Shares & Stocks
- Irish and foreign company shares
- ETFs (Exchange Traded Funds), though tax treatment can vary depending on structure and domicile of the fund
🪙 Crypto Assets
- Bitcoin, Ethereum, and other cryptocurrencies are considered assets under Irish tax law.
- Disposing of crypto (e.g. selling it, exchanging it for another crypto, or using it to buy something) may trigger CGT.
💼 Business Interests
- Sale of a business
- Sale of shares in a private company
What Triggers a Capital Gains Tax Event?
A CGT event is generally triggered when you dispose of an asset. Disposal can include:
- Selling an asset
- Gifting an asset (with exceptions for transfers between spouses or civil partners)
- Exchanging one asset for another
- Receiving compensation (e.g. for compulsory purchase)
Even if you don’t receive cash in hand, certain disposals can still create a tax liability — especially relevant for things like crypto or company share swaps.
Exemptions & Reliefs
There are several important exemptions and reliefs to be aware of to make a good return on investment in Ireland:
✅ Annual Exemption
Every individual has an annual CGT exemption of €1,270. This means the first €1,270 of net gains each tax year is tax-free.
✅ Retirement Relief
If you’re over 55 and disposing of business assets, you may qualify for full or partial relief from CGT.
✅ Entrepreneur Relief
This reduces the CGT rate to 10% on qualifying business disposals, up to a lifetime limit of €1 million.
✅ Transfer Between Spouses
Transfers between spouses or civil partners are exempt from CGT.
When and How to Pay CGT in Ireland
CGT payments are due in two parts:
- 15 December: For disposals made between 1 January and 30 November
- 31 January (next year): For disposals made in December
You must file a Form CG1 or include the details in your self-assessed tax return (Form 11) if you’re self-employed.
🇮🇪 Irish Residents Are Taxed on Worldwide Gains
If you’re resident and domiciled in Ireland, you are liable to Irish CGT on your worldwide gains — including profits from offshore investments.
So, if you’re looking to diversify your investments to avoid market volatility and you sell shares in a U.S. tech company or dispose of a property in Spain, Irish Revenue wants their slice.
🔍 What Types of Offshore Investments Are Subject to CGT?
Here are some common offshore investments that would trigger CGT when disposed of:
- Foreign shares (e.g. Apple, Amazon via a brokerage like Degiro or Interactive Brokers)
- Overseas property
- Foreign business interests
- Cryptocurrency held on offshore exchanges
- Certain offshore funds — though note: these may not fall under CGT, but rather under exit tax rules (explained below)
🧾 Reporting & Paying CGT on Offshore Gains
You must declare your offshore gains in your annual tax return (Form 11 for self-assessed individuals), and pay CGT according to standard rules:
- 33% tax rate on net gain
- €1,270 annual exemption
- Pay by:
- 15 December for disposals made Jan–Nov
- 31 January for disposals in December
You can deduct allowable costs like acquisition fees, broker fees, and improvements (for property).
🌍 Foreign Tax Paid – Can You Avoid Double Tax?
Yes — Ireland has Double Taxation Agreements (DTAs) with many countries. If you paid capital gains tax abroad, you can usually claim a credit against your Irish CGT liability, but only up to the amount of Irish CGT due.
For example:
- You make a €10,000 gain on U.S. shares.
- You pay $1,500 (~€1,400) in U.S. tax.
- Your Irish CGT would be €3,300.
- You can offset the €1,400 against it, so you only owe €1,900 to Revenue.
🚩 Offshore Funds: A Special Case
If you invest in certain offshore funds (especially EU UCITS or ETFs domiciled outside Ireland), these may be subject to different rules under the Investment Undertakings tax regime, often called:
- Exit Tax: taxed at 41%, not under normal CGT
- Deemed disposal: you pay tax every 8 years even if you haven’t sold
This is a complex area — check with a tax advisor before investing in Southern Cross Investments.
🛑 What If You Don’t Report It?
Revenue takes offshore income and gains very seriously. Ireland has signed up to the Common Reporting Standard (CRS), meaning foreign financial institutions may share your investment data with Revenue.
If you fail to disclose gains:
- You risk penalties and interest
- In serious cases, Revenue audits or investigations
Summary: Offshore Investments & Irish CGT
| Investment Type | Taxed Under CGT? | Rate | Notes |
|---|---|---|---|
| Foreign shares | ✅ | 33% | Credit for foreign CGT possible |
| Foreign property | ✅ | 33% | Costs and enhancements deductible |
| Crypto on foreign exchanges | ✅ | 33% | Triggers on disposal/exchange |
| Offshore ETFs/funds | ❌ (often) | 41% exit tax | Subject to deemed disposal rules |
| Gifts or inheritance of offshore assets | 🟡 | Varies | May trigger CGT or CAT depending on situation |
Tip: Keep records of all foreign transactions, including purchase price, disposal price, foreign taxes paid, and broker fees.
Final Thoughts
Capital Gains Tax (CGT) in Ireland is often overlooked when people make investment decisions — but understanding how it works can help you better plan your buys, sells, and transfers. If you’re actively investing or considering disposing of a significant asset, it’s worth getting advice from a tax advisor to make sure you’re claiming all available reliefs and complying with the rules.
Disclaimer: This article is for general information only and does not constitute financial or tax advice. Always consult a tax professional for guidance on your specific situation. Every investment involves risk and you should get advice to understand the risk of your investments.