What is Capital Gains Tax (CGT)?
Capital Gains Tax is a tax on the profit you make when you sell, gift, or otherwise dispose of an asset. It isn't a tax on the total sale price, but on the 'chargeable gain'—the difference between what you paid for the asset and what you sold it for.
For example: If you bought shares for €10,000 and sold them for €50,000, your gain is €40,000. CGT would be calculated on this €40,000 profit.
This tax can even apply if you gift an asset to someone (other than a spouse or charity), where the market value at the time of the gift is used to calculate the gain.
Who Pays CGT in Ireland? The Crucial Residency Question
This is the most important section for any digital nomad or expat. In Ireland, your liability for CGT depends on your residency and domicile status.
Irish Residents/Ordinarily Residents: If you are considered a tax resident or ordinarily resident in Ireland, you are generally liable for CGT on your worldwide gains. This means gains from selling a property in Thailand or shares on a US stock exchange are taxable in Ireland, regardless of where the money is.
The Non-Domicile Advantage: Here's the key 'tax hack' for international entrepreneurs. If you are a tax resident in Ireland but your 'domicile' (your permanent home country by law) is elsewhere, you can elect for the remittance basis of taxation. Under this basis, you only pay Irish CGT on foreign gains if you bring (remit) those funds into Ireland. Gains kept in foreign bank accounts remain outside the Irish tax net.
What Assets Trigger CGT for Nomads?
Many assets that a typical digital nomad or investor holds are subject to CGT. The most common ones include:
Property: Real estate that is not your primary private residence.
Shares: Stocks in public companies or shares in your own private company (like a US LLC).
Cryptocurrency: While not explicitly listed as its own category, gains from crypto are treated as assets and are subject to CGT.
Land: Any plots of land you own.
Valuable Collectibles: Antiques or jewelry, if sold while you are resident in Ireland.
Intellectual Property: Patents and copyrights.
CGT on Foreign Assets and Double Taxation
As a default, if you're an Irish tax resident, your gain on a foreign asset is taxable in Ireland. This can create a situation where you might have to pay CGT in the country where the asset is located _and_ in Ireland.
However, Ireland has an extensive network of Double Taxation Treaties (DTTs). These agreements typically allow you to claim a credit for tax paid in the foreign country against your Irish CGT liability, preventing you from being taxed twice on the same gain. Again, for non-domiciled individuals, using the remittance basis is often the simplest way to manage gains from foreign assets by keeping the proceeds outside of Ireland.
The CGT Rate and Key Exemptions in 2025
Understanding the numbers helps you plan effectively. Here are the core figures and reliefs:
Standard CGT Rate: The primary CGT rate in Ireland is a flat 33% on chargeable gains.
Higher Rate: A 40% rate can apply to certain investments, like some offshore funds or life assurance policies.
Annual Exemption: Every individual has an annual CGT exemption of €1,270. This means the first €1,270 of your total chargeable gains in a tax year is tax-free. While helpful, it's a modest amount.
What Assets are Exempt from CGT?
Some gains are completely free from CGT in Ireland. These include:
Winnings from lotteries, betting, or prize bonds.
Private motor cars.
Government stocks.
Animals.
Transfers of assets between spouses or civil partners (no CGT is due at the time of transfer).
Assets gifted to charities.
What About Inherited Property?
You do not pay CGT when you inherit an asset. Instead, the recipient may be liable for Capital Acquisitions Tax (CAT). However, if you later sell that inherited asset, CGT will apply to the gain you make from the time you inherited it (its value at the date of death) to the time you sell it.
