Lesson 7.1 · 1 of 5 · Tax, pensions and protection where you live
Capital gains tax on shares in Ireland: how it works, with examples
When you sell shares at a profit in Ireland, you pay capital gains tax (CGT) of 31% on the gain. The first €1,270 of gains each year is exempt, and losses reduce the gain. Irish and EU funds and ETFs pay exit tax instead. You pay CGT yourself, by 15 December or 31 January.
Terms in this lesson
- Capital gain
- The difference between the price you sell at and the price you bought at.
- ETF
- A fund listed on the stock exchange that buys dozens or hundreds of companies at once.
- UCITS
- The European label for funds that follow EU investor protection rules.
- Broker
- The firm through which you buy and sell stocks, ETFs and other investments.
Opening question
You live in Ireland. You bought shares for €5,000 and sell them in November 2026 for €8,000. What is CGT charged on?
CGT is charged on the gain, not on the sale price: €8,000 minus €5,000, minus dealing costs and the €1,270 yearly exemption. The tax is due once you sell, whether or not you take the money out of the broker account.
It does not matter if you get it wrong: trying first helps you remember.
How capital gains tax on shares is calculated in Ireland
Definition
What is capital gains tax?
A tax on the profit you make when you sell something for more than it cost.
For shares, the gain is the sale price minus what you paid, minus dealing costs on both trades. Add up all your gains for the year, take off your losses, then take off the yearly exemption of €1,270. What is left is taxed at 31%. The tax year is the calendar year.
- Sale price minus purchase pricefor each share you sold in the year
- Minus dealing costscommissions on the purchase and on the sale
- Minus losses, then minus €1,270the exemption is per person and cannot be passed to a spouse
- Multiply by 31%that is the CGT you owe
Work it out
In November 2026 you sell shares for €12,000. They cost €7,000, and you paid €20 in dealing costs in total. You have no other gains or losses that year. With a 31% rate and the €1,270 exemption, how much CGT do you owe, in euro?
A hint
Gain = 12,000 - 7,000 - 20. Take off 1,270, then multiply by 0.31.
Gain: €12,000 - €7,000 - €20 = €4,980. After the exemption: €4,980 - €1,270 = €3,710. CGT: €3,710 × 31% = €1,150.10.
CGT or exit tax: how shares and ETFs are taxed in Ireland
Ireland taxes shares and funds differently. Most ETFs sold to Irish investors are UCITS funds based in Ireland or elsewhere in the EU, and these pay exit tax, not CGT.
Sharescapital gains tax
- 31% on the gain
- €1,270 of gains a year tax-free
- Losses reduce other gains, and unused losses carry forward
- You work out and pay the tax yourself
Irish and EU funds and ETFsexit tax
- One flat rate: 38% in 2026
- No yearly exemption
- A loss on a fund cannot reduce gains on shares
- Tax is due every 8 years even if you do not sell
Compare
In December 2026 you sell for a €3,000 gain. You have no other gains that year. Which leaves you with the bigger tax bill?
How sure are you?
The ETF. Shares: (€3,000 - €1,270) × 31% = €536.30. ETF: €3,000 × 38% = €1,140. Even at the 35% rate proposed for 2027 the ETF would pay €1,050.
Watch out
What is deemed disposal?
Every 8 years, Revenue treats your fund as sold, even if you keep it.
On each eighth anniversary of buying, you pay exit tax on the growth so far. When you finally sell, the tax already paid is credited against the bill. Budget 2027 did not remove this rule for ordinary accounts. It only excludes the new Investment Account, covered in the lesson on tax-free accounts.
Myth or fact?
“If I never sell my Irish-domiciled ETF, I never pay tax on its growth.”
This exercise is in the free account, where we also save your progress.
Create a free accountCGT losses, payment dates and the tax return in Ireland
- Losses on shares are deducted from gains in the same year. If losses are bigger than gains, you carry the rest forward to later years.
- Married couples and civil partners assessed jointly: one partner’s losses are set against the other’s gains automatically.
- The four-week rule: if you sell shares at a loss and buy the same shares back within four weeks, that loss can only be used against a gain on those same shares.
- Funds are separate: a loss on an ETF taxed under exit tax cannot reduce your CGT on shares.
Work it out
In November 2026 you sell one share for a €6,000 gain and another for a €2,500 loss. With a 31% rate and the €1,270 exemption, how much CGT do you owe, in euro?
This exercise is in the free account, where we also save your progress.
Create a free account| You sell in | Pay CGT by | File the return by |
|---|---|---|
| January to November | 15 December of the same year | 31 October of the next year |
| December | 31 January of the next year | 31 October of the next year |
Self-employed people and anyone with non-PAYE income file Form 11 on ROS. PAYE workers who must file use the paper Form 12, as CGT cannot go on the online eForm 12. Others use the paper Form CG1. You must be registered for CGT to pay it online.
Check yourself
You sell shares at a gain on 10 December 2026. By when must you pay the CGT?
This exercise is in the free account, where we also save your progress.
Create a free accountWhat would you do?
It is early December. One share shows a €4,000 gain, which you plan to sell. Another shows a €1,500 loss. What do you do?
This exercise is in the free account, where we also save your progress.
Create a free accountThese are the general rules for individuals resident in Ireland. Your own situation may differ: check Revenue’s CGT pages or ask a qualified tax adviser.
What you learned
- Shares pay CGT of 31% on gains made from 7 October 2026, after a yearly exemption of €1,270.
- Irish and EU funds and ETFs pay exit tax instead (38% now; 35% from 2027 if the Finance Bill passes), with deemed disposal every 8 years.
- Losses on shares reduce gains; you pay by 15 December or 31 January and file by 31 October of the next year.
You reached the end
Keep what you learned
With a free account we remember your lessons, bring back the questions you got wrong exactly when you need them and keep your streak.
Save your progress with a free accountLessons are educational. They are not a recommendation to buy or sell. Investing involves risk and you can lose money. Sources: Revenue, How to calculate CGT, If you make a loss and When and how do you pay and file CGT (checked 29 October 2026); Department of Finance, Budget 2027 Tax Policy Changes and Finance (No. 2) Bill 2026 Explanatory Memorandum; Revenue eBrief No. 016/26 (38% rate from 1 January 2026); Taxes Consolidation Act 1997, section 581(3) (the four-week rule) and section 739B (the eight-year period).