Capital Gains Tax on Property in Ireland

Capital Gains Tax (CGT) is charged at 33% on the profit when you sell a property for more than it cost you. Your only or main home is usually fully exempt under Principal Private Residence relief, so most people selling the family home pay nothing. CGT mainly bites on investment properties, second homes and inherited property you later sell. The first €1,270 of gains each year is exempt.

CGT is a tax on the gain, not the sale price. If you bought for €300,000 and sell for €380,000, the gain is €80,000, and CGT is charged on that (after deductions), not on the €380,000. Here is how it works for property in Ireland.

Your home is usually exempt

If the property was your only or main residence for the whole time you owned it, the gain is exempt from CGT under Principal Private Residence (PPR) relief (the garden or grounds up to one acre are included). For most owner-occupiers selling their home, there is no CGT to pay. See the selling-your-home guide.

CGT applies when the property was not your main home throughout, for example: - an investment property or a second home; - a property you inherited and later sell (the gain is measured from its value at the date of death); - a former home you let out for part of your ownership (relief is then partial).

How the gain is calculated

1. Start with the sale price.
2. Deduct allowable costs: what you paid for it, the costs of buying and selling (solicitor, estate agent, valuation), and money spent enhancing it (an extension or improvement, not normal repairs).
3. Deduct the annual exemption of €1,270 (per person, each tax year; it cannot be transferred between spouses).
4. The result is the taxable gain, charged at 33%.

Worked example: bought for €300,000, sold for €380,000, with €10,000 of buying and selling costs. Gain = €80,000 − €10,000 = €70,000. Less the €1,270 exemption = €68,730. CGT at 33% ≈ €22,681.

When you pay and file

CGT is self-assessed, and payment comes before the return: - Sold between 1 January and 30 November: pay by 15 December that same year. - Sold in December: pay by 31 January the following year. - File your CGT return (Form CG1, or in your Form 11) by 31 October of the year after the sale.

Reliefs worth knowing

Beyond PPR relief and the annual exemption, reliefs can reduce or remove CGT in specific cases (for example certain properties bought between 2011 and 2014, transfers between spouses, or partial PPR relief for periods you lived in a property you later let). These get technical quickly.

CGT can be a large bill on a non-home sale, so if it applies to you, get advice from an accountant or Revenue before you sell. This guide is general information, not tax advice; rates and reliefs change, so confirm the current position with Revenue.