Introduction
Thinking of selling a house, an apartment, or land in Ireland?
It’s important to know that a property sale could trigger a Capital Gains Tax (CGT) liability. And if you’re not careful, you might end up paying more tax than necessary.
In this guide, we break down when CGT applies, how it’s calculated, and the reliefs you might be entitled to — so you can plan smarter and keep more of your profit.
When Does Capital Gains Tax Apply to a Property Sale?
You’ll typically pay CGT when you sell, gift, or transfer a property in Ireland — unless the property qualifies for an exemption.
Here’s when CGT applies:
- Selling a second home, rental property, or investment property.
- Gifting a property to someone else (transfers count as disposals).
- Swapping one property for another.
You usually won’t pay CGT if you’re selling your main home, provided you meet the conditions for Principal Private Residence Relief (explained below).
How Is Capital Gains Tax Calculated?
The amount of CGT you owe is based on your chargeable gain — not the full selling price.
Here’s the simple formula:
Selling Price – (Original Purchase Price + Allowable Costs) = Chargeable Gain
You pay CGT at 33% of this gain.
Allowable costs that reduce your gain include:
- Solicitor’s fees
- Auctioneer or estate agent fees
- Advertising costs
- Major improvement works (like adding an extension)
Pro Tip: Always keep receipts for your costs. Good record-keeping could significantly lower your CGT bill.
Can You Avoid CGT? Principal Private Residence Relief
You might not have to pay CGT if you sell your main home and meet Revenue’s criteria for Principal Private Residence (PPR) Relief.
To qualify for full relief:
- The property must have been your main residence throughout the period of ownership.
- Any surrounding land (up to one acre) used for personal enjoyment is also covered.
- Only the portion of the property you lived in qualifies (rental sections may reduce the relief).
Example:
- If you lived in the home for 8 out of 10 years of ownership, you can claim partial relief based on the period you lived there.
Other Exemptions and Reliefs to Reduce CGT
Here are other ways you might reduce or eliminate your CGT bill:
| Relief | What It Covers |
| Principal Private Residence Relief | Full exemption if selling your main home. |
| Retirement Relief | Business or farm owners aged 55+ may qualify. |
| Spouse or Civil Partner Transfers | No CGT due on transfers between spouses or civil partners. |
| Annual Small Gains Exemption | First €1,270 of gains each year are tax-free. |
Pro Tip: Even if you qualify for an exemption, you must still declare the disposal to Revenue.
Deadlines: When Do You Pay and File?
Timing is critical with CGT:
| Sale Date | CGT Payment Deadline | Tax Return Filing |
| 1 Jan – 30 Nov | 15 December same year | Include in Form 11/CG1 by 31 Oct next year |
| 1 Dec – 31 Dec | 31 January following year | Same as above |
You’ll need to file either a Form CG1 (for PAYE workers) or a Form 11 (for self-employed) to report the gain.
Related Read: Tax Deadlines Every Irish Business Owner Should Know
Quick Example: Calculating CGT
Scenario:
- Bought an apartment for €200,000.
- Sold it for €400,000.
- Incurred €15,000 in legal and improvement costs.
Your Gain:
€400,000 – (€200,000 + €15,000) = €185,000
CGT Due:
33% of €185,000 = €61,050
Pro Tip: Even if no CGT is due because of reliefs, you must still declare the sale to Revenue.
Conclusion
Selling a house or property is a major event — and so is understanding your tax obligations.
From knowing when CGT applies to claiming available reliefs, careful planning can make a real financial difference. Don’t leave it to chance.
At Intax.ie, we help Irish homeowners, landlords, and investors navigate Capital Gains Tax rules with confidence.
Thinking about selling? Contact Intax.ie today for expert advice on maximising reliefs and minimising your tax bill.
