Capital gains
Capital Gains Tax on property in Ireland: how it's worked out
Last updated 16 October 2026
Selling a property you don't live in? Capital Gains Tax is 31% of the gain from 7 October 2026, after costs and the €1,270 exemption.
When you sell, give away or otherwise dispose of a property, Capital Gains Tax (CGT) is charged on the gain. That is what you got for it, less what it cost you. Your own home is usually exempt. A second home, a rental, a site or farmland usually isn't.
The rate
Budget 2027 cut the standard rate from 33% to 31% for disposals on or after 7 October 2026. The change takes effect when Finance (No. 2) Bill 2026 is enacted. Development land stays at 33%. The date that counts is the date of the unconditional contract, not the closing date. See the 31% rate.
Working out the gain
Start with the sale price, then take off:
- selling costs: estate agent, solicitor and advertising
- the purchase price, or the market value if you inherited it or were given it
- buying costs: stamp duty, legal and valuation fees
- improvements that are still reflected in the property, such as an extension; not repairs or upkeep
Spending before 2003 is increased by an indexation factor. After the gain, losses and the €1,270 annual exemption come off, and the rest is taxed.
An example
A second home was bought in 2016 for €210,000, with €6,000 of buying costs. It got a €25,000 new roof and windows in 2020 and is sold in November 2026 for €395,000. Selling costs are €7,500.
| Sale price | €395,000.00 |
| Selling costs | (€7,500.00) |
| Purchase price | (€210,000.00) |
| Buying costs | (€6,000.00) |
| New roof and windows | (€25,000.00) |
| Gain | €146,500.00 |
| Annual exemption | (€1,270.00) |
| Taxable gain | €145,230.00 |
| CGT at 31% | €45,021.30 |
The sale was in November, so the tax is due by 15 December 2026 and the return by 31 October 2027. See CGT deadlines.
Reliefs that may apply
| Situation | Guide |
|---|---|
| It was your home for all or part of the time | Main-home relief |
| It was let | CGT on a rental property |
| Bought from 7 December 2011 to 31 December 2014 | The 2011–2014 relief |
| Owned before 2003 | Indexation relief |
| Inherited or given to you | Gifted or inherited property |
| Development land | Development land |
| A farm or business, aged 55 or over | Retirement relief |
| A loss on another sale | CGT losses |
Big sales: clearance
A house or apartment may sell for more than €1 million, or other land or buildings for more than €500,000. Then the buyer needs a clearance certificate (CG50A) from you, or must hold back 15% of the price. See CG50A clearance.
Work it out
Sources
- Revenue: How to calculate CGT (checked 25/10/2026)
- Revenue: When and how do you pay and file CGT? (checked 25/10/2026)
- Revenue: Tax and Duty Manual Part 02-03-01A: Capital Gains Tax rate of charge (S.28) (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
- Revenue: Capital Gains Tax Multiplier Table (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.