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Understanding Capital Gains Tax in Ireland: A Beginner’s Guide

Investing is a smart way to build long-term wealth, but understanding the tax implications is just as crucial as choosing the right assets. One of the most important taxes that Irish investors must consider is Capital Gains Tax (CGT). Whether you’re selling property, shares, or other investments, CGT in Ireland can significantly impact your returns.

In this guide, the team at Bond & Co, expert Chartered Certified Accountants in Dublin, breaks down everything you need to know about CGT - from how it’s calculated to top strategies for minimising your liability.

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What is Capital Gains Tax (CGT)?

Capital Gains Tax is a tax on the profit (or gain) you make when you dispose of an asset that has appreciated in value. The key point to remember: you are taxed on the gain, not the total sale amount.

Disposing of an asset doesn’t just mean selling it - it also includes gifting, exchanging, or transferring ownership.

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How is CGT Calculated in Ireland?

The current Capital Gains Tax rate in Ireland is 33%.

To calculate your CGT:

  • Subtract the original purchase price and any associated costs (such as legal fees, enhancement costs) from the disposal amount.

  • Apply the 33% tax rate to the resulting gain.

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Example:
Buy shares for €10,000 → Sell for €15,000
Gain = €5,000 → CGT = €1,650

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Deadlines: When is Capital Gains Tax Due?

CGT in Ireland follows a two-period deadline system:

  • Disposals made from January 1st to November 30th: Payment is due by December 15th of the same year

  • Disposals made in December: Payment is due by January 31st of the following year

You must report and pay CGT through the Revenue Online Service (ROS) via self-assessment.

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How to Minimise Your Capital Gains Tax Liability

If you're looking to reduce your CGT, here are smart strategies you can consider:

  • Use Your Annual Exemption: Each individual is entitled to a €1,270 tax-free CGT allowance annually.

  • Offset Losses Against Gains: Report any capital losses to reduce your taxable gain.

  • Time Asset Disposals: Strategically plan disposals across tax years to use multiple exemptions.

  • Invest in Exempt Assets: Certain assets like Irish Government Bonds and Prize Bonds are CGT-exempt.

  • Hold Investments Longer: No disposal = no CGT liability.

  • Utilise Spouse Transfers: Transfers between spouses are CGT-free, allowing better exemption planning.

  • Principal Private Residence Relief: Selling your primary home can be fully exempt from CGT.

  • Pension Contributions: Growing your retirement fund can defer and reduce tax liability.

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Need Help with CGT? Contact a Dublin Tax Accountant

Understanding Capital Gains Tax in Ireland can be overwhelming—but with Bond & Co, it doesn’t have to be. We’re here to simplify CGT planning, reporting, and compliance for individuals, small businesses, and corporate clients.

Based in Swords, Co. Dublin, we provide expert accountancy services including:

  • CGT advice and filing

  • Tax efficiency strategies

  • Company tax returns and audits

  • Bookkeeping, VAT, payroll and more

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