Question 1

What is the CGT rate in Ireland and what is the annual exemption?

Accepted Answer

Ireland charges Capital Gains Tax (CGT) at a rate of 33% on chargeable gains. This applies to the sale or disposal of assets including shares, property (other than your principal private residence), cryptocurrency, and other investments.

Each individual has an annual CGT exemption of €1,270, which is not transferable between spouses. Gains below this threshold in a tax year are not subject to CGT. Losses realised in the same year, or carried forward from prior years, can offset gains before app

Question 2

How is cryptocurrency taxed in Ireland — income tax on receipts and CGT on disposal?

Accepted Answer

Ireland's Revenue treats cryptocurrency as an asset subject to CGT on disposal, and as income when received as payment or earned through certain activities.

When you sell, swap, or otherwise dispose of cryptocurrency, any gain is subject to CGT at 33%. The gain is the disposal proceeds minus the acquisition cost (adjusted for allowable expenses and indexation, where applicable). Each individual has a €1,270 annual CGT exemption. Losses can offset gains within the same year or be carried forward

Question 3

How does Irish CAT (Capital Acquisitions Tax) work — what are the group thresholds?

Accepted Answer

Capital Acquisitions Tax (CAT) is Ireland's combined inheritance and gift tax, charged at a flat rate of 33% on the taxable value of gifts and inheritances above the applicable group threshold.

For 2024, there are three group thresholds. Group A (€335,000) applies to gifts or inheritances received from a parent by a child, or to a minor child of a deceased child. Group B (€32,500) applies to gifts from grandparents, siblings, aunts, uncles, and nieces or nephews. Group C (€16,250) applies to al

Question 4

What is Dividend Withholding Tax (DWT) in Ireland and when does it apply?

Accepted Answer

Dividend Withholding Tax (DWT) is a tax withheld at source by Irish companies when they pay dividends to shareholders. The standard DWT rate is 25% of the gross dividend.

How it works:

When an Irishresident company (or a company dealt on the Irish Stock Exchange) declares a dividend, it withholds 25% before paying you. If you are an Irish tax resident individual, the DWT withheld is a credit against your income tax liability for that year — it is not a separate additional tax. You declare the

Question 5

What are the Irish inheritance tax (CAT) thresholds for Group A, B, and C in 2024?

Accepted Answer

Capital Acquisitions Tax (CAT) is Ireland's tax on gifts and inheritances. It applies at a flat rate of 33% on the value received above the relevant taxfree threshold. The threshold depends on the relationship between the recipient (beneficiary) and the person who died or gifted (disponer).

2024 CAT Group Thresholds:

Group  Relationship to Disponer  2024 TaxFree Threshold

Group A  Child (including adopted, step, foster), or parent (where inheritance only)  €335,000 
 Group B  Sibling, niec

Question 6

What is the DIRT rate in Ireland for 2024 and how does it work?

Accepted Answer

Deposit Interest Retention Tax (DIRT) is a withholding tax on interest earned on deposits held in Irish financial institutions. Your bank deducts DIRT before paying you interest, so you normally receive interest net of DIRT already.

DIRT rate for 2024:

The DIRT rate is 33% for 2024 — the same rate as Capital Gains Tax and CAT. This rate has been stable since 2020. DIRT replaces income tax and PRSI on deposit interest — you do not pay additional income tax or USC on the gross interest, but you

Categories

CGT & Investments Tax Questions & Answers