You bought something. Later you sold it for more than you paid. The difference is your gain, and Revenue wants a third of it.
That's capital gains tax (CGT) in one line. The rest is detail, but the detail matters, so here it is.
What counts
Most things you own and later sell can be caught. In practice, for most people it's one of these:
- Shares, including RSUs and ESPP shares from work
- Crypto
- A second property or a site
- Shares in a company you set up
Your own home, where you've lived the whole time, is normally exempt. So is a car you drive yourself.
How the gain is worked out
Take what you sold it for. Subtract what it cost you, plus fees for buying and selling. What's left is the gain.
If you bought in dollars or sterling, convert the cost at the rate on the day you bought, and the sale at the rate on the day you sold. Currency moves can make a gain bigger or smaller than it looks in your broker app.
Example
You buy shares for €4,000 and pay €20 in fees.
You sell them for €7,000 and pay €20 in fees.
Gain: €7,000 − €4,000 − €40 = €2,960.
The €1,270 you don't pay on
Everyone gets €1,270 of gains tax-free each year. It's per person, so a couple gets two, but you can't pass yours to your partner if you don't use it. It doesn't roll over to next year either.
Example
Gain €2,960, less €1,270 = €1,690 taxable.
€1,690 × 33% = €557.70 to pay.
When you pay
This is where people get caught. You pay during the year, not after it.
- Sold between 1 January and 30 November: pay by 15 December that year.
- Sold in December: pay by 31 January the following year.
- Then file Form CG1 (or your income tax return) by 31 October the following year.
So paying and filing are two separate jobs with separate dates. Miss the payment and interest runs at 0.0219% a day, which works out at about 8% a year.
Short version
- Gain = sale price minus cost and fees, in euro.
- First €1,270 a year is free.
- The rest is taxed at 33%.
- Pay by 15 December (or 31 January for December sales). File by 31 October next year.