Capital Gains Tax & Investment Income – Ireland

Flat rate on gains from sale of assets: property (except principal residence), shares, crypto, business assets. Applied to gain after deducting costs and annual exemption.

First €1,270 of gains tax-free each year. Cannot be transferred between spouses but each spouse has their own exemption. Use it or lose it - doesn't carry forward.

Applies to gains from foreign life assurance policies and certain offshore investment funds. Also applies to some deemed disposal events.

15% for venture capital fund gains (individuals/partnerships). 12.5% for venture capital gains (companies). Requires approved venture capital fund and holding period requirements.

No CGT on sale of your main home if used throughout ownership as only residence, grounds ≤1 acre, no business use. Partial relief if let out or absent for periods. Last 12 months always exempt.

For business owners/farmers aged 55+. Full relief up to €1.27M to anyone, up to €10M when transferring to children (ages 55-69), €3M cap from age 70+. 12-year clawback period if child disposes.

Reduced 10% rate on qualifying business disposals. Lifetime limit €1.5 million from January 2026 (increased from €1 million). Must have owned ≥5% for 3+ years, worked in business.

Site transfer (up to 1 acre, valued ≤€500,000) to child for building principal residence is CGT exempt. Child must actually build and live in property.

Irish companies withhold 25% DWT before paying dividends. This is a prepayment credited against final liability. Non-residents may reclaim under tax treaties.

Dividends taxed as income: 40% income tax + 8% USC + 4% PRSI = 52% for higher earners. Standard rate (20%) taxpayers pay 33.2% total (20% + 9.2% USC + 4% PRSI). DWT credit applied.

Foreign withholding tax (e.g., 15% US under treaty) credited against Irish tax liability. Must declare gross dividend amount before withholding. File W-8BEN with US brokers.

Reduced from 41% to 38% in Budget 2026. Applies to Irish and EU-domiciled ETFs, investment funds, and life assurance policies. Non-EU ETFs taxed under CGT at 33%.

Must pay exit tax every 8 years on unrealized gains ('deemed disposal') even if you haven't sold. Controversial rule unique to Ireland. Tax paid on deemed disposals credited when eventually sold.

Unlike CGT, exit tax losses cannot be offset against any gains. Loss relief very limited. Makes Irish/EU ETFs tax-inefficient vs non-EU ETFs or direct shares.

Deposit Interest Retention Tax withheld at source by Irish banks on deposit account interest. Satisfies full tax liability - no further return needed for PAYE workers with only DIRT income.

Persons aged 65+ not liable to income tax, or permanently incapacitated, can claim DIRT exemption/refund. Must apply in advance for gross interest payment.