Selling a Property? Don’t Miss These Capital Gains Tax Tips
If you’re thinking about selling a rental property or second home, it’s important to understand your potential Capital Gains Tax (CGT) bill. With the CGT rate in Ireland currently at 33%, your liability could be significant but with a little careful planning, you may be able to reduce it. Here’s what you need to know when planning a property sale in 2025.
- The Basics
- CGT is charged at 33% on the net gain made when you dispose of an asset.
- Your gain is calculated as: Sale Price – Purchase Price – Improvement Costs – Selling Costs.
- You’re entitled to an annual CGT exemption of €1,270 per person.
- Deductible Costs to Lower Your CGT
You can deduct a range of costs from your gain arising both from the purchase and sale of the property, including:
- Solicitor and auctioneer/estate agent fees
- Stamp duty you originally paid
- Significant capital improvements (e.g. extensions, new kitchens)
- Advertising or marketing fees
- Reliefs You May Be Eligible For
- Principal Private Residence Relief: If you lived in the property as your main home at some stage, the relief may apply for that property.
- Transfer to a Spouse: No CGT on transfers between spouses (your spouse is deemed to have acquired the property at your original cost and acquisition date).
- Retirement Relief: If you’re 55 or over and selling a qualifying business or farm.
- Loss Relief: Offset unused losses from other assets against your property gain.
- Timing Is Key
- Disposals from 1 Jan to 30 Nov: Tax due by 15 Dec 2025.
- Disposals in December: Tax due by 31 Jan 2026.
Planning ahead can give you time to gather receipts, apply for reliefs, and potentially delay the sale to manage your tax bill.
Need help crunching the numbers? FastTax.ie’s tax return completion tool will calculate your gains/losses and ensure you claim every deduction you’re entitled to.
Check out our free CGT calculator tool for an estimated liability.
