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Foreign Capital Gains Tax (CGT) relief

If you dispose of a foreign property you may have to pay CGT in the country that the property is in.

Depending on your residence and domicile status you may also have to pay Irish CGT.

You might be able to deduct some, or all, of the foreign CGT, you paid when you calculate how much Irish CGT you owe.

How much can you deduct?

The amount you can deduct depends on whether Ireland has a Double Taxation Agreement (DTA) with the country that your property is in.

If Ireland does not have a DTA that covers CGT you can claim a deduction for the foreign CGT paid.

Note

You might pay more foreign CGT than Irish CGT. If you do, you can only claim a credit up to the amount of Irish CGT that you owe.

You can deduct a personal exemption of €1,270 when calculating the amount of Irish CGT that you owe.

  • Example 1

    Country with which Ireland has a DTA

    Michael is resident in Ireland. He bought a foreign property in 2011 for €100,000. He sold it in 2024 for €201,270. He paid foreign CGT of €15,000. He had no other gains or losses in that year.

    Ireland has a DTA that covers CGT with the country that Michael’s property is in. Michael can claim a credit for the foreign CGT paid against the amount of Irish CGT he owes.

    Michael's Irish CGT calculation
    DescriptionAmount
    Sale price €201,270
    Deduct allowable expenses:  
    Purchase price €100,000
    Chargeable gain €101,270
    Deduct personal exemption €1,270
    Irish taxable gain €100,000
    Irish CGT (33% of €100,000) €33,000
    Deduct foreign CGT credit €15,000
    Irish CGT due €18,000
  • Example 2

    Country with which Ireland does not have a DTA

    Sarah is resident in Ireland. She bought a foreign property in 2011 for €100,000. She sold it in 2024 for €201,270. She paid foreign CGT of €15,000. She had no other gains or losses in that year.

    Ireland does not have a DTA that covers CGT with the country that Sarah’s property is in. Sarah can claim a deduction for the foreign CGT paid.

    Sarah's Irish CGT calculation
    DescriptionAmount
    Sale price €201,270
    Deduct allowable expenses:  
    Purchase price €100,000
    Chargeable gain €101,270
    Deduct foreign CGT paid €15,000
    Deduct personal exemption €1,270
    Irish taxable gain €85,000
    Irish CGT (33% of €85,000) €28,050

Published: 17 December 2024 Print this page

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