How to Reduce Capital Gains Tax in Ireland

At 33%, Capital Gains Tax in Ireland takes a significant chunk of any profit. But several reliefs and planning strategies can legally reduce the amount you owe.

Use Your Annual Exemption

Every individual has an annual CGT exemption of EUR 1,270. For a married couple, that is EUR 2,540 combined. If you can spread disposals across tax years, each disposal benefits from a fresh exemption.

Claim All Enhancement Expenditure

Every euro of enhancement expenditure (extensions, renovations, structural work) reduces your gain. Keep receipts for all capital work on the property, no matter how long ago it was done.

Principal Private Residence Relief

The gain on your PPR is fully exempt. If the property was partly rented or used for business, the exemption is proportional. The last 12 months of ownership are always treated as PPR use, even if you had moved out.

Entrepreneur Relief (10% Rate)

If you are disposing of qualifying business assets and meet the ownership conditions, the rate drops from 33% to 10% on the first EUR 1,500,000 of lifetime gains. This can save over EUR 345,000 in tax.

Retirement Relief

Individuals over 55 disposing of qualifying business assets up to EUR 750,000 can claim full CGT relief. For disposals to a child, there is no upper limit (if under 66).

Timing of Disposal

If you dispose of an asset in December, CGT is due by 31 January. If you wait until January, CGT is not due until 15 December. The timing can give you almost 12 months of additional cash flow.

Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.