If you're selling property, shares, or other assets in Ireland, understanding the available Ireland tax deductions 2025/2026 and capital gains tax allowances Ireland can save you thousands of euros. Capital gains tax (CGT) in Ireland applies to the profit you make when you dispose of an asset, but the good news is that a range of deductions, exemptions, and reliefs can significantly reduce — or even eliminate — your tax bill.

In this comprehensive guide, we'll walk you through every key deduction and allowance available under Irish CGT rules for the 2025/2026 tax year, including practical examples, common pitfalls, and tips for both residents and non-residents. You can also estimate your liability quickly using our Ireland Capital Gains Tax Calculator.

Understanding Ireland's Capital Gains Tax in 2025/2026

Capital gains tax in Ireland is charged on the profit (or "gain") you make when you sell or dispose of an asset. For the 2025/2026 tax year, the standard CGT rate remains at 33%. This applies to most chargeable gains, including those from the sale of:

  • Residential and commercial property
  • Shares and securities
  • Business assets
  • Foreign assets (for Irish residents)
  • Certain personal assets above specified thresholds

However, the headline rate doesn't tell the whole story. Ireland's tax code provides a series of deductions, allowances, and reliefs that can substantially lower the amount on which you actually pay CGT.

Who Pays CGT in Ireland?

Your CGT obligations depend on your residency status:

  • Irish residents and ordinarily resident individuals are liable to CGT on worldwide gains — i.e., gains made on assets located anywhere in the world.
  • Non-residents are generally only liable to Irish CGT on gains from the disposal of certain Irish assets, primarily Irish land, buildings, minerals, and shares deriving their value from such assets.

If you're a non-resident with Irish assets, it's worth checking whether a double taxation agreement (DTA) between Ireland and your country of residence offers any relief. Ireland has an extensive network of DTAs with over 70 countries, which can prevent you from being taxed twice on the same gain.

The Annual Personal Exemption (Tax-Free Allowance)

One of the most important capital gains tax allowances Ireland offers is the annual personal exemption. For the 2025/2026 tax year, every individual is entitled to an annual tax-free allowance of:

€1,270 per person per year

This means the first €1,270 of your total chargeable gains in any tax year is completely exempt from CGT. Key points to note:

  • The exemption is per individual, so a married couple can each claim their own €1,270 allowance, giving a combined exemption of €2,540 if both partners have chargeable gains.
  • The exemption cannot be carried forward — if you don't use it in a given year, it's lost.
  • It applies to your net gains after deducting allowable costs and losses.

Practical Example: Using the Annual Exemption

Suppose you sell shares in 2025 and make a chargeable gain of €5,270 after deducting all allowable costs. Here's how the annual exemption works:

  1. Total chargeable gain: €5,270
  2. Less annual personal exemption: €1,270
  3. Taxable gain: €4,000
  4. CGT at 33%: €1,320

Without the exemption, your CGT bill would have been €1,739.10 — so the allowance saves you €419.10.

Use our Ireland Capital Gains Tax Calculator to run your own numbers quickly and accurately.

Allowable Deductions: Reducing Your Chargeable Gain

Before the 33% rate is applied, you can deduct a range of costs from the sale price to arrive at your chargeable gain. These allowable deductions are critical to minimizing your CGT liability.

Acquisition Costs

You can deduct the original cost of acquiring the asset, which includes:

  • The purchase price you paid for the asset
  • Stamp duty paid on acquisition
  • Legal and professional fees (e.g., solicitor's fees, auctioneer's fees) related to buying the asset
  • Stockbroker fees or commissions paid when purchasing shares

Enhancement Expenditure

If you spent money improving the asset (not just maintaining it), these costs are deductible. Examples include:

  • Building an extension on a property
  • Significant renovations that added value
  • Capital improvements to business premises

Important: Routine maintenance and repair costs are not deductible for CGT purposes. The expenditure must be of a capital nature that is reflected in the state or nature of the asset at the time of disposal.

Disposal Costs

Costs directly associated with selling the asset are also deductible:

  • Estate agent or auctioneer fees
  • Solicitor's fees for the sale
  • Advertising costs related to the sale
  • Stockbroker commissions on share disposals

Indexation Relief (for Assets Acquired Before 2003)

For assets acquired on or before 31 December 2002, Ireland offers indexation relief. This adjusts the original acquisition cost (and any enhancement expenditure incurred before 2003) upward using official multipliers to account for inflation.

The multipliers vary depending on the year of acquisition. For example, assets purchased in 1990 benefit from a multiplier of approximately 1.442, meaning your allowable cost is increased by 44.2%.

Key rules:

  • Indexation relief is only available for assets acquired on or before 31 December 2002.
  • The multiplier is applied to the original cost and to enhancement expenditure incurred in qualifying years.
  • If you acquired an asset after 1 January 2003, no indexation relief applies.

This relief can make a significant difference for long-held assets, particularly property.

Key Capital Gains Tax Reliefs and Exemptions in Ireland

Beyond the annual exemption and allowable deductions, Ireland provides several targeted Ireland tax relief measures for specific circumstances.

Principal Private Residence (PPR) Relief

This is one of the most valuable CGT exemptions in Ireland. If you sell your main home (the property you have lived in as your primary residence), the gain is fully exempt from CGT, provided:

  • The property was your principal private residence for the entire period of ownership.
  • The land associated with the house does not exceed one acre (0.4047 hectares), excluding the site of the house itself.
  • The property was not used for business purposes during your period of ownership.

If the property was your main home for only part of the ownership period, the relief is apportioned. The last 12 months of ownership are always treated as a period of occupation, even if you had moved out.

Example: You owned a house for 10 years and lived in it for 8 years before renting it out for 2 years. You would receive PPR relief on 9/10 of the gain (8 years of actual occupation plus the final 12 months deemed occupation), and CGT would apply to the remaining 1/10.

Retirement Relief (Sections 598 and 599 TCA 1997)

Retirement relief is designed to assist individuals disposing of business assets or shares in a family company at or near retirement age.

  • Disposal to a person other than a child: If you are aged 55 or over and dispose of qualifying business assets, gains on disposals of up to €750,000 are exempt from CGT. For disposals where the consideration exceeds €750,000, CGT applies to the full gain (no marginal relief).
  • Disposal to a child: The lifetime threshold is more generous at €3,000,000 for disposals made to a child (including a niece or nephew who has worked in the business).

To qualify, you must generally have:

  • Owned the assets for at least 10 years ending with the disposal.
  • Been a working director of the company for at least 10 years (for share disposals), with 5 of those years as a full-time working director.

Note: These thresholds are lifetime limits, not annual limits.

Entrepreneur Relief (Revised Relief for Entrepreneurs)

Entrepreneur relief applies a reduced CGT rate of 10% (instead of the standard 33%) on gains from the disposal of qualifying business assets, up to a lifetime limit of €1,000,000 in chargeable gains.

To qualify:

  • You must have owned the business (or shares in a qualifying company) for a continuous period of at least 3 years in the 5 years immediately before the disposal.
  • For company shares, you must have been a director or employee of the company who spent at least 50% of their working time in the service of the company.
  • You must have held at least 5% of the ordinary share capital of the company.

This relief can save up to €230,000 over a lifetime (the difference between 33% and 10% on €1,000,000).

Transfer Between Spouses and Civil Partners

Transfers of assets between spouses or civil partners are treated as taking place at a value that gives rise to no gain and no loss. This means:

  • No CGT is payable on the transfer.
  • The receiving spouse inherits the original base cost and acquisition date.

This can be a powerful planning tool, as it allows couples to utilize both partners' annual exemptions and potentially access lower effective rates through careful timing of disposals.

Other Notable Exemptions

Several other exemptions and reliefs are worth noting:

  • Tangible moveable property: Gains on the sale of individual tangible moveable assets (e.g., furniture, jewellery, paintings) are exempt if the disposal consideration is €2,540 or less. If the consideration exceeds this, marginal relief may apply.
  • Government securities: Gains on Irish government bonds (gilts) are exempt from CGT.
  • Wasting assets: Certain assets with a predictable useful life of 50 years or less (excluding land) may be exempt.
  • Compensation and damages: Certain compensation receipts, particularly for personal injury, are exempt.
  • Life assurance policies: Gains on the maturity or disposal of qualifying life assurance policies are generally exempt from CGT (though exit tax may apply).

How to Offset Capital Losses Against Gains

Capital losses are a crucial component of Ireland tax deductions 2025/2026 for CGT purposes. If you sell an asset at a loss, you can use that loss to reduce your chargeable gains.

Rules for Loss Relief

  1. Same-year offset: Capital losses realized in the same tax year are set against gains before the annual exemption is applied.
  2. Carry forward: If your losses exceed your gains in a given year, the excess losses can be carried forward indefinitely and used against gains in future years.
  3. No carry back: Capital losses cannot be carried back to offset gains from previous years.
  4. Connected parties: Losses on disposals to connected persons (e.g., close family members) can only be offset against gains from disposals to the same connected person.
  5. Loss claims must be made: You must claim your capital losses by including them in your tax return. Unclaimed losses may not be available for future offset.

Practical Example: Offsetting Losses

In 2025, you make the following disposals:

  • Sale of shares: gain of €15,000
  • Sale of investment property: loss of €6,000
  • Carried-forward loss from 2024: €2,000

Calculation:

  1. Gross gain: €15,000
  2. Less current-year loss: €6,000 → €9,000
  3. Less carried-forward loss: €2,000 → €7,000
  4. Less annual exemption: €1,270 → €5,730
  5. CGT at 33%: €1,890.90

Payment Deadlines and Filing Requirements for 2025/2026

Ireland operates a self-assessment system for CGT. Missing deadlines can result in interest and penalties, so it's essential to know the key dates.

CGT Payment Dates

The tax year for CGT is the calendar year (1 January to 31 December). Payments are split into two periods:

Disposal Period Payment Deadline
1 January – 30 November 2025 15 December 2025
1 December – 31 December 2025 31 January 2026

Filing Your Return

You must report your chargeable gains (and claim any losses) on your annual income tax return (Form 11 or Form 12). The filing deadline for the 2025 tax year is:

  • 31 October 2026 (paper filing)
  • Mid-November 2026 (for Revenue Online Service/ROS filers — the exact extended deadline is confirmed annually)

Even if your gain is fully covered by reliefs or the annual exemption, you may still need to file a return if you disposed of assets above certain value thresholds.

You can use our Ireland Income Tax Calculator to understand how your overall tax position, including CGT, fits into your annual tax return.

Common Mistakes and Misconceptions to Avoid

Navigating Ireland's CGT rules can be complex. Here are some of the most frequent errors taxpayers make:

  • Forgetting to claim losses: If you don't include capital losses on your return, you may lose the ability to offset them later. Always report losses in the year they occur.
  • Confusing maintenance costs with enhancement costs: Only capital expenditure that enhances the value of the asset is deductible. Repainting a property or fixing a boiler is not an allowable deduction.
  • Missing the PPR conditions: If you rent out part of your home, or if you have more than one acre of land, the full PPR relief may not apply. Check the conditions carefully.
  • Ignoring indexation relief: For assets held since before 2003, failing to apply indexation relief means you're overpaying CGT.
  • Misunderstanding the "connected persons" rules: Transfers to family members are deemed to take place at market value, not at the price actually paid. This means you can have a taxable gain even on a sale at below market value (except for spouse/civil partner transfers).
  • Assuming non-residents are fully exempt: Non-residents can still owe Irish CGT on Irish land, buildings, and related assets.
  • Missing payment deadlines: The split-year payment dates catch many taxpayers off guard. Mark both the December and January deadlines in your calendar.

Frequently Asked Questions

What is the CGT rate in Ireland for 2025/2026?

The standard capital gains tax rate in Ireland is 33% for the 2025/2026 tax year. A reduced rate of 10% applies under Entrepreneur Relief for qualifying business disposals up to a lifetime limit of €1,000,000.

How much can I earn tax-free from capital gains in Ireland?

Each individual has an annual tax-free allowance of €1,270. Married couples where both spouses have gains can use €2,540 combined.

Can I deduct mortgage interest from a capital gain?

No. Mortgage interest is a financing cost, not an acquisition or enhancement cost. It is not deductible for CGT purposes.

Do I pay CGT on inherited assets?

Generally, no. When you inherit an asset, the base cost is the market value at the date of inheritance, and no CGT arises on the inheritance itself. However, if you later sell the inherited asset for more than its market value at the date of inheritance, you will owe CGT on the gain.

Is there CGT on cryptocurrency in Ireland?

Yes. Revenue has confirmed that profits from cryptocurrency disposals are subject to CGT at 33%. The annual exemption and loss relief rules apply in the normal way.

How do double taxation agreements affect my CGT?

If you are tax resident in a country that has a DTA with Ireland, the agreement may provide relief from being taxed on the same gain in both countries. In most cases, Ireland's DTAs give the right to tax gains on immovable property (real estate) to the country where the property is located.

Conclusion and Key Takeaways

Ireland's capital gains tax system for 2025/2026 offers a range of valuable deductions and allowances that can meaningfully reduce your tax liability. Here's a summary of the most important points:

  • The standard CGT rate is 33%, but the effective rate can be much lower with proper planning.
  • Every individual gets a €1,270 annual exemption — use it or lose it.
  • Deduct all allowable costs, including acquisition expenses, enhancement expenditure, and disposal costs.
  • Apply indexation relief for assets acquired before 2003.
  • Principal Private Residence Relief can make the sale of your main home entirely tax-free.
  • Retirement Relief and Entrepreneur Relief offer significant savings for business owners.
  • Capital losses can be carried forward indefinitely, but must be claimed.
  • Spouses and civil partners can transfer assets between each other with no CGT consequences.
  • Don't miss the payment deadlines — 15 December and 31 January for the 2025 tax year.

To get a quick estimate of your capital gains tax liability, use our Ireland Capital Gains Tax Calculator. For a broader view of your Irish tax position, our Ireland Income Tax Calculator can also help.

This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently; consult a qualified tax professional for advice specific to your situation.