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Complete Guide: Irish Capital Gains Tax 2025
Foreign Investments & CGT Filing
Shares, ETFs, Crypto, Dividends - Form 11, CGT, EXIT Tax & ROS Filing
ℹ️ KEY RULES
1. EXIT TAX (EU/IRISH ETFs)
EXIT tax is currently 41% on Irish and EU-domiciled ETFs (reducing to 38% from January 1, 2026). 8-year deemed disposal applies (tax on unrealized gains every 8 years).
2. ⚠️ PRSI/USC ON DIVIDENDS
IMPORTANT: PRSI (4%) and USC (up to 8%) DO apply to dividend income in Ireland, including foreign dividends, in addition to income tax.
For higher-rate taxpayers: approximately 52% total (40% income tax + 4% PRSI + 8% USC). For standard-rate taxpayers: approximately 26-27% (20% income tax + 4% PRSI + 2-3% USC). However, individual circumstances may vary - verify your specific situation with Revenue (01 738 3636) or a tax advisor.
3. ✅ CRYPTO-TO-CRYPTO TRADES CONFIRMED TAXABLE
Revenue has confirmed: Every crypto-to-crypto swap is a taxable event. Swapping BTC for ETH triggers CGT. 33% rate, FIFO method, €1,270 exemption applies.
Why Is Irish Investment Tax So Complex?
- • Multiple tax rates: CGT 33%, EXIT 41%, Dividends 20-52%, DIRT 33%
- • EXIT tax nightmare: 41% on unrealized gains every 8 years (deemed disposal)
- • PRSI/USC confusion: Conflicting guidance on whether PRSI/USC applies to dividends
- • 8-year deemed disposal tracking: Must track purchase dates for every ETF
- • Multiple brokers = calculation nightmare: Revolut + DEGIRO + IBKR = manual work
- • Fear of Revenue penalties: Incorrect filing can result in significant fines
- • Time consumption: Manual calculations can take 40+ hours
What Tax-Wizard Does for You
🎯 Automated Calculations
- ✅ CGT at 33% with €1,270 exemption
- ✅ EXIT tax at 41%
- ✅ 8-year deemed disposal tracking
- ✅ FIFO method implementation
- ✅ Crypto-to-crypto trade tracking
- ✅ Foreign tax credit breakdown
- ✅ Dividend taxation (with PRSI/USC disclaimer)
📊 Report Generation
- ✅ Single combined report (Form 11 + CGT + EXIT tax)
- ✅ ETF deemed disposal schedules
- ✅ Loss carryforward tracking (indefinite)
- ✅ Broker compatibility (Revolut, DEGIRO, IBKR, eToro, etc.)
- ✅ ROS filing ready
- ✅ Detailed disclaimers for PRSI/USC
📊 Capital Gains Tax (CGT) Fundamentals
CGT Rate
33%
Flat rate on capital gains
Ireland has a flat 33% CGT rate on all capital gains from:
- - Irish and foreign shares ✅
- - Non-Irish/EU ETFs ✅
- - Cryptocurrency ✅
- - Investment property
Annual Exemption
€1,270
Tax-free each year
First €1,270 of gains each year are tax-free:
- - Applies to total gains across all assets
- - Cannot be carried forward if unused
- - Married couples: €1,270 each
- - Does NOT apply to EXIT tax
CGT Calculation Example
If the gain was €2,000: (€2,000 - €1,270) × 33% = €241 tax
✅ What counts as CGT:
- - Irish and foreign shares
- - Non-Irish/EU ETFs (US ETFs like VOO, VTI)
- - Cryptocurrency (BTC, ETH, etc.)
- - Investment property (not your home)
⚠️ EXIT Tax (ETFs)
What is EXIT Tax?
EXIT tax is currently 41% on Irish and EU-domiciled ETFs, reducing to 38% from January 1, 2026 following Budget 2026 reforms.
Most controversial feature: Tax on UNREALIZED gains - you pay tax even if you never sold!
8-Year Deemed Disposal Rule
Every 8 years, you are "deemed" to have sold and rebought your ETF, triggering tax on unrealized gains:
Example:
- - Jan 1, 2017: Buy €10,000 of VWCE (Irish-domiciled ETF)
- - Jan 1, 2025: 8 years later, market value = €18,000
- - Gain: €8,000 (unrealized - you didn't sell!)
- - EXIT tax due: €8,000 × 41% = €3,280
- - New cost basis: €18,000
- - Next deemed disposal: Jan 1, 2033
Cash flow problem: You must pay €3,280 in tax WITHOUT selling the ETF. Many investors are forced to sell shares just to pay the tax bill.
Which Funds Have EXIT Tax?
Check the ISIN code (first 2 letters indicate domicile):
❌ EXIT Tax Applies (41%)
- - IE... = Irish domiciled
- - LU... = Luxembourg
- - DE, FR, IT, ES, NL = EU countries
- - Examples: VWCE (IE00BK5BQT80), CSPX (IE00B5BMR087)
✅ CGT Applies (33%)
- - US... = United States
- - Other non-EU countries
- - Examples: VOO (US9229083632), VTI (US9229087690)
- - Better tax treatment for Irish investors!
⚠️ EXIT Tax Losses:
ETF losses CANNOT be offset against EXIT tax gains or CGT gains. Losses are essentially worthless. This is the most criticized aspect of EXIT tax.
📋 Stamp Duty on Irish Shares
⚠️ What is Stamp Duty?
When you buy shares in Irish-registered companies, you pay a 1% stamp duty on the purchase price.
This is in addition to any broker fees. The stamp duty is paid by the buyer, not the seller.
Standard Rate
1%
Of purchase price
Paid By
Buyer
Not the seller
Property Companies
7.5%
Higher rate for real estate
Which Shares Have Stamp Duty?
❌ Stamp Duty Applies (1%)
- - Irish-registered companies: AIB, Bank of Ireland, CRH, Kerry Group, Ryanair, etc.
- - Check company registration, not stock exchange
- - Applies even if trading on London or US exchanges
✅ No Stamp Duty
- - Foreign shares: Apple, Microsoft, Tesla, Shell
- - ETFs: VWCE, CSPX, VOO (not shares)
- - 2025 exemption: Irish companies < €1bn market cap
Stamp Duty Calculation Example
You buy shares in AIB (Irish bank):
Important: The stamp duty increases your cost basis for CGT calculations. When you sell, your gain is calculated from €5,060, not €5,000.
✅ 2026 UPDATE - New Exemption:
Budget 2026 introduced an exemption from stamp duty for purchases of shares in Irish companies with a market value of less than €1 billion, effective from 1 January 2026. This supports smaller Irish businesses.
📝 Broker Handling:
Most brokers and platforms (Revolut, Degiro, IBKR) automatically collect stamp duty when you buy Irish shares. It appears as a separate line item in your transaction confirmation. Always check your total transaction cost.
₿ Cryptocurrency Tax
⚠️ CRITICAL: Crypto-to-Crypto Trades ARE Taxable
Revenue has confirmed: Every crypto-to-crypto swap is a taxable event.
Example:
- - Buy 1 BTC @ €20,000
- - Swap BTC for 10 ETH when BTC = €30,000
- - Taxable gain on BTC: €10,000
- - CGT: (€10,000 - €1,270) × 33% = €2,881 tax
- - New cost basis for ETH: €30,000 (€3,000 each)
CGT Rate
33%
Flat rate on crypto gains
Exemption
€1,270
Annual exemption applies
Method
FIFO
First In, First Out
Mining & Staking
Mining and staking rewards are taxed as INCOME (not CGT) at the time of receipt:
At Receipt (Income Tax)
- - Income tax: 20% or 40% (marginal rate)
- - PRSI: 4%
- - USC: 0.5%, 2%, 3%, or 8% (progressive rates)
- - Total: 26% - 52%
Fair market value at receipt date
At Disposal (CGT)
- - Cost basis = receipt value
- - Gain = sale price - receipt value
- - CGT: 33%
- - €1,270 exemption applies
When you eventually sell the crypto
✅ Loss Carryforward:
Crypto losses can offset crypto gains AND other CGT gains (shares, property). Losses carry forward indefinitely ✅
📝 Record Keeping:
You MUST keep records for 6 years: Every trade, swap, deposit, withdrawal, exchange, wallet, DeFi protocol.
📊 Options & Derivatives Taxation
⚠️ CRITICAL: Trading vs Investment Distinction
The tax treatment of options, futures, and CFDs depends entirely on whether Revenue considers your activity "trading" or "investment".
This determination can mean the difference between a 33% tax rate (CGT) and 52% tax rate (income tax + PRSI + USC).
Investment
Tax treatment: Capital Gains Tax
Characteristics:
- - Infrequent transactions
- - Long holding periods
- - Part of diversified portfolio
- - Hedging existing positions
- - Limited time spent managing
Tax rate:
33%
Plus €1,270 annual exemption
Trading
Tax treatment: Income Tax
Characteristics:
- - Frequent transactions (daily/weekly)
- - Short holding periods
- - Systematic trading approach
- - Significant time commitment
- - High volume/leverage
Tax rate:
26-52%
Income tax + PRSI + USC
Specific Instrument Treatment
📋 Stock Options (S.532 TCA 1997)
Options are assets for CGT purposes, but trading determination still applies.
Four tax events:
- 1. Granting an option: Premium received is a chargeable gain (or loss if bought back)
- 2. Exercising an option: Premium paid increases cost basis of shares acquired
- 3. Allowing option to lapse: Premium paid is an allowable loss
- 4. Disposing of option: Normal CGT calculation on gain/loss
📊 CFDs (Contracts for Difference)
Generally treated as speculative transactions = income tax treatment
- - High leverage nature suggests trading
- - Most CFD activity falls under income tax
- - Cannot claim €1,270 exemption
- - Losses only offset against trading profits
⚡ Futures & Commodities
Tax treatment depends on intention and frequency
- - Hedging business activity: Business expense
- - Speculative trading: Income tax
- - Long-term investment: CGT (rare)
⚠️ "Badges of Trade" Test
Revenue uses several factors to determine if you're trading or investing:
- ✓ Subject matter of the transaction
- ✓ Length of ownership
- ✓ Frequency of transactions
- ✓ Supplementary work done
- ✓ Circumstances of realization
- ✓ Motive/intention
- ✓ Method of financing
- ✓ Existence of similar transactions
🚨 Professional Advice ESSENTIAL
Options and derivatives taxation is extremely complex and highly fact-specific.
- - Revenue can challenge your classification years later
- - Wrong classification can result in significant back taxes and penalties
- - Documentation of investment intent is crucial
- - Consult a tax advisor BEFORE engaging in derivatives trading
🏦 Dividends Taxation
Basic Dividend Tax Rates
Standard Rate Taxpayer
20%
Income up to €44,000
Higher Rate Taxpayer
40%
Income above €44,000
⚠️ IMPORTANT: PRSI/USC Application to Dividends
How Dividends Are Taxed:
PRSI (4%) and USC (up to 8%) DO apply to dividend income in Ireland, including foreign dividends, in addition to income tax.
This is confirmed by Revenue and multiple authoritative Irish tax sources. Dividend income is treated as part of your total income and is subject to income tax, PRSI, and USC.
Total Effective Tax Rates:
Higher-rate taxpayers: Approximately 52% (40% income tax + 4% PRSI + 8% USC)
Standard-rate taxpayers: Approximately 26-27% (20% income tax + 4% PRSI + 2-3% USC)
💡 Important Note:
- - Individual circumstances may vary based on your total income and tax status
- - We recommend verifying your specific situation with Revenue at 01 738 3636 or a qualified tax advisor
- - This tool calculates dividends including PRSI and USC as per standard Irish tax treatment
Dividend Tax Rate Breakdown
Standard Rate Taxpayers:
Higher Rate Taxpayers:
Income tax rate depends on whether your total income exceeds €44,000 (2025 threshold)
🏛️ Dividend Withholding Tax (DWT)
What is DWT?
Dividend Withholding Tax (DWT) is a 25% tax deducted at source by Irish companies before paying dividends to Irish resident shareholders.
DWT was increased from 20% to 25% on January 1, 2020 and remains at this rate in 2025.
Irish Company Dividends
25% DWT withheld before you receive payment
- - Applied to: AIB, Bank of Ireland, CRH, Kerry Group, etc.
- - Deducted automatically
- - Appears on dividend statement
Foreign Dividend Encashment Tax
25% encashment tax when cashed through Irish financial institutions
- - Introduced January 1, 2021
- - Applies to: US, UK, EU dividends
- - Does NOT apply to retail branch cheques
DWT Calculation Example (Irish Company)
⚠️ Important Tax Treatment:
Standard rate taxpayers (20%):
- - DWT (25%) > Income tax due (20%)
- - No further income tax due (but still owe PRSI + USC)
- - May be entitled to small refund
Higher rate taxpayers (40%):
- - DWT (25%) is just a prepayment
- - Must pay additional 15% income tax + PRSI + USC
- - Total effective rate: ~52%
Foreign Tax Credit
Foreign withholding tax can be credited against Irish tax:
Example: US dividend
🏦 DIRT Tax on Savings Interest
DIRT = Deposit Interest Retention Tax
DIRT Rate
33%
Flat rate on deposit interest
DIRT (Deposit Interest Retention Tax) is applied to interest earned on:
- - Irish bank savings accounts
- - Credit union accounts
- - Deposit accounts in EU banks
- - Savings certificates
Key Features
✅ Withheld at Source
Bank deducts DIRT before paying you interest
✅ No Further Tax
No income tax or USC due after DIRT paid
📋 Must Declare
Include on tax return if filing Form 11
DIRT Calculation Example
The €412.50 DIRT is your final tax liability - no further income tax or USC is due.
✅ DIRT Applies To:
- - Irish bank deposit accounts
- - Irish credit unions
- - Interest from EU banks (paid through Irish institutions)
- - State Savings products
❌ DIRT Does NOT Apply To:
- - Foreign bank accounts held directly
- - Interest from foreign bonds
- - Peer-to-peer lending interest
- - (These are taxed as income at marginal rate)
💡 Comparison: DIRT vs Dividend Tax
DIRT (Deposit Interest):
33% final tax - no USC/PRSI
Dividends:
20-40% income tax + 4% PRSI + USC = 26-52%
DIRT is often more favorable than dividend taxation for higher earners.
⚠️ Foreign Account Interest:
If you have interest from foreign bank accounts or foreign bonds not paid through an Irish financial institution, you must:
- - Self-assess the income on Form 11
- - Pay income tax at marginal rate (20% or 40%)
- - Pay PRSI (4%) and USC (up to 8%)
- - Total: 26-52% (much higher than DIRT!)
📄 Form 11 vs Form CG1
Which to File?
Form CG1
Capital Gains Tax Return - Standalone CGT return
Use when:
- - You ONLY have capital gains
- - No other income to report
- - Simpler than Form 11
Deadlines:
- - Jan 1 - Nov 30 gains: December 15
- - Dec 1 - Dec 31 gains: January 31 (following year)
Payment due same date as filing
Form 11
Income Tax & CGT Return - Comprehensive tax return
Use when:
- - You have self-employment income
- - Rental income
- - Dividends
- - Other income + capital gains
Deadline:
- - Paper filing: October 31
- - ROS online: November 19 (extended)
Pay & File deadline
💡 Quick Decision Guide:
- - Only trading/investing? → Form CG1 ✅
- - Have other income (rental, freelance)? → Form 11 ✅
- - Dividends only? → Usually Form 11 (income tax)
- - Both dividends and capital gains? → Form 11 ✅
✅ Tool Output:
Tax-Wizard generates a single combined report covering Form 11 and CGT. You choose which form to file based on your situation.
🖥️ How to File on ROS
What is ROS?
Revenue Online Service (ROS) is Revenue's online tax filing system. It's faster, more convenient, and gives you an extended filing deadline.
✅ ROS Benefits
- • Extended deadline: Nov 19 vs Oct 31 (paper)
- • No postage needed: File from home
- • Instant confirmation: Immediate acknowledgment
- • Online payment: Pay directly through ROS
- • Tax history access: View previous returns
📝 How to Register
- 1. Have your PPS number ready
- 2. Request ROS access code at ros.ie
- 3. Wait 5-10 business days for code by post
- 4. Complete registration online
- 5. Set up digital certificate
Tip: Register early! Don't wait until filing deadline.
Filing with Tax-Wizard:
- 1. Generate report with Tax-Wizard
- 2. Log into ROS at ros.ie
- 3. Select Form 11 or submit Form CG1 (use the combined report)
- 4. Enter figures from Tax-Wizard report
- 5. Submit and pay online
📉 Loss Carryforward & Offsetting
CGT Losses
✅ Good News:
- - Can offset against CGT gains in same year
- - Unused losses carry forward INDEFINITELY
- - Can offset against future CGT gains
- - Can transfer to spouse/civil partner
⚠️ Requirements:
- - Must be claimed (don't expire but must file)
- - Keep records of all loss transactions
- - Records must be kept for 6 years
- - Can only offset capital gains (not other income)
⚠️ EXIT Tax Losses
This is one of the most criticized aspects of EXIT tax:
- - ETF losses CANNOT be offset against EXIT tax gains
- - ETF losses CANNOT be offset against CGT gains
- - Essentially worthless!
- - Major criticism of the EXIT tax regime
Crypto Losses
✅ Crypto losses are treated as CGT losses:
- - Can offset crypto gains
- - Can offset shares gains
- - Can offset property gains
- - Indefinite carryforward ✅
Example:
🔄 Wash Sale Rules (4-Week Rule)
Tax Planning & Loss Harvesting
What is the 4-Week Rule?
Ireland has an anti-avoidance rule (Section 581 TCA 1997) that restricts how capital losses can be used if you sell and quickly rebuy the same shares.
This prevents investors from artificially creating losses while maintaining the same investment position.
Profitable Shares
NO RESTRICTION - You can sell and immediately rebuy
Bed & Breakfast Strategy:
- - Sell profitable shares to use €1,270 exemption
- - Rebuy immediately (same day is fine)
- - Resets cost basis to current price
- - Legal and encouraged by tax advisors
This is a valuable tax planning tool to maximize your annual exemption.
Loss-Making Shares
4-WEEK RESTRICTION applies to loss harvesting
If you rebuy within 4 weeks:
- - The loss is restricted
- - Can ONLY offset against gains from those specific shares
- - Cannot offset against other shares/crypto/property gains
- - Must wait 4 weeks to avoid restriction
Wait at least 29 days (4 weeks + 1 day) before rebuying if you want unrestricted loss treatment.
Example: Loss Harvesting Gone Wrong
Scenario: You own 200 shares of Tesla
❌ WRONG Approach (4-week violation):
✅ CORRECT Approach (wait 4 weeks):
Comparison to Other Countries
🇮🇪 Ireland
4 weeks waiting period for losses
🇬🇧 UK
30 days bed and breakfasting rule
🇺🇸 USA
30 days wash sale rule (before or after)
💡 Tax Planning Tip:
Use the Bed & Breakfast strategy every year to reset your cost basis:
- 1. Identify positions with gains up to €1,270
- 2. Sell them near year-end (tax-free due to exemption)
- 3. Rebuy immediately (no waiting period for gains!)
- 4. Your new cost basis is the higher current price
- 5. Reduces future CGT liability
❓ Frequently Asked Questions
Can I use this report directly with ROS?
The Tax-Wizard report is a helper tool to assist you in preparing your Form 11 or Form CG1. You must log into ROS and complete the official form using the figures from this report. The tool generates all the calculations you need, but you must file the official form yourself.
What calculation method does the tool use?
The tool uses the FIFO (First In, First Out) method as required by Irish Revenue. This means the shares/crypto you bought first are assumed to be sold first.
What is the CGT rate in Ireland?
The CGT rate is 33% with an annual exemption of €1,270. This applies to shares, non-EU ETFs, cryptocurrency, and property.
Can I carry forward losses?
Yes! CGT losses can be carried forward indefinitely. However, EXIT tax losses (from Irish/EU ETFs) CANNOT be offset against any gains.
What is EXIT tax?
EXIT tax is currently 41% (reducing to 38% from January 1, 2026) on Irish and EU-domiciled ETFs. It includes an 8-year deemed disposal rule where you pay tax on unrealized gains every 8 years.
What is deemed disposal?
Every 8 years you are "deemed" to have sold and rebought your ETF, triggering tax on unrealized gains. You must pay 41% even if you never sold. This is one of Ireland's most controversial tax rules.
How do I know if my ETF has EXIT tax?
Check the ISIN code. If it starts with IE (Ireland), LU (Luxembourg), or other EU country codes, EXIT tax applies. US ETFs (starting with US) have CGT at 33% instead.
Are crypto-to-crypto trades taxable?
YES! Revenue has confirmed: Every crypto-to-crypto swap is a taxable event. Swapping BTC for ETH triggers CGT on the BTC disposal at 33%.
How is mining/staking taxed?
Mining and staking rewards are taxed as INCOME (not CGT) at 20-52% (income tax + PRSI + USC) at receipt. When you sell, you pay CGT at 33% on gains from the receipt value.
Do PRSI and USC apply to foreign dividends?
Yes, PRSI and USC DO apply to dividend income in Ireland, including foreign dividends.
For higher-rate taxpayers, the total effective rate is approximately 52% (40% income tax + 4% PRSI + 8% USC).
Individual circumstances may vary. We recommend verifying your specific situation with Revenue at 01 738 3636 or a tax advisor.
Should I file Form 11 or Form CG1?
Use Form CG1 if you ONLY have capital gains. Use Form 11 if you have other income (self-employment, rental, dividends). Form 11 deadline: Oct 31 (paper) or Nov 19 (ROS). Form CG1: Dec 15 or Jan 31.
What records must I keep?
You must keep records for 6 years: broker statements, transaction history, purchase/sale confirmations, dividend statements, crypto exchange records, this Tax-Wizard report.
Do I pay stamp duty on all share purchases?
No. You only pay 1% stamp duty when purchasing shares in Irish-registered companies (e.g., AIB, Bank of Ireland, CRH, Ryanair).
Foreign shares (Apple, Tesla, Microsoft) and ETFs have no Irish stamp duty.
Budget 2026 introduced an exemption for Irish companies with market value under €1 billion (effective 1 January 2026).
Can I sell at a loss and immediately rebuy to harvest the loss?
No - the 4-week rule applies. If you sell shares at a loss and rebuy the same shares within 4 weeks, the loss can ONLY be offset against future gains from those specific shares.
Wait at least 29 days (4 weeks + 1 day) before rebuying if you want the loss to offset any capital gains.
Note: This restriction does NOT apply to profitable shares - you can use the "bed & breakfast" strategy freely for gains.
What's the difference between DIRT and dividend tax?
DIRT (Deposit Interest Retention Tax):
- 33% flat rate on savings account interest
- Withheld by bank
- No further income tax or USC due
Dividend Tax:
- 20-40% income tax + 4% PRSI + USC (up to 8%)
- Total: 26-52% depending on income level
- DWT (25%) may be withheld on Irish dividends
Are options and CFDs taxed differently from shares?
Yes - and it depends on whether you're "trading" or "investing":
If treated as investment: CGT at 33% with €1,270 exemption
If treated as trading: Income tax at 20-52% (income tax + PRSI + USC), no exemption
CFDs are usually considered speculative = income tax. Options taxation is complex and depends on granting, exercising, or letting lapse. Professional tax advice essential.
What is DWT and how does it affect my dividends?
DWT (Dividend Withholding Tax) is a 25% tax withheld by Irish companies before paying dividends.
For standard rate taxpayers: DWT (25%) exceeds your income tax liability (20%), so you may owe only PRSI + USC.
For higher rate taxpayers: DWT is a prepayment. You still owe additional income tax (15%) + PRSI + USC on top.
🚨 Common Mistakes to Avoid
Learn from others' mistakes. Here are the most common errors Irish investors make when filing taxes:
1. ❌ Not Keeping Records for 6 Years
The mistake: Deleting broker statements or not saving transaction confirmations.
Why it matters: Revenue can audit up to 4 years back (6 years if suspected issues). Without records, you can't prove your cost basis or transaction dates.
✅ Fix: Save ALL broker statements, PDFs, CSVs, and Tax-Wizard report. Store in cloud backup for 6 years minimum.
2. ❌ Missing the 8-Year Deemed Disposal Deadline
The mistake: Not tracking purchase dates for ETFs and forgetting the 8-year deadline.
Why it matters: EXIT tax (41%, reducing to 38% in 2026) is due even if you don't sell. Late payment incurs penalties and interest.
✅ Fix: Set calendar reminders for 7.5 years after each ETF purchase. Keep a spreadsheet tracking all ETF purchase dates.
3. ❌ Forgetting Stamp Duty on Irish Shares
The mistake: Not including the 1% stamp duty in cost basis calculations.
Why it matters: Your cost basis should include stamp duty. If you bought €10,000 of AIB shares, your cost basis is €10,100 (€10,000 + 1% stamp duty).
✅ Fix: Check broker statements for stamp duty charges. Add them to your cost basis to reduce taxable gains.
4. ❌ Violating the 4-Week Wash Sale Rule
The mistake: Selling shares at a loss and immediately rebuying to "harvest" the loss.
Why it matters: If you rebuy within 4 weeks, the loss can ONLY offset gains from those specific shares - not other investments.
✅ Fix: Wait 29 days (4 weeks + 1 day) before rebuying if you want unrestricted loss treatment. Or buy a similar (but not identical) investment instead.
5. ❌ Not Claiming Foreign Tax Credits
The mistake: Paying US withholding tax (15-30%) but not claiming credit against Irish tax.
Why it matters: You're entitled to a credit for foreign tax paid. Not claiming means you pay tax twice on the same income.
✅ Fix: Keep records of all withholding tax. Claim foreign tax credit on Form 11 (reduces Irish tax owed).
6. ❌ Confusing EXIT Tax with CGT
The mistake: Assuming all ETFs are taxed at 33% CGT.
Why it matters: Irish/EU ETFs (VWCE, CSPX) have 41% EXIT tax + deemed disposal. US ETFs (VOO, VTI) have 33% CGT with no deemed disposal. Huge difference!
✅ Fix: Check ISIN code. IE/LU/DE = EXIT tax. US = CGT. For new investors, consider US-domiciled ETFs for better tax treatment.
7. ❌ Not Using the Annual €1,270 Exemption
The mistake: Never realizing gains until you need to cash out completely.
Why it matters: You lose €1,270 of tax-free gains every year if you don't use it. Over 10 years, that's €12,700 wasted exemption.
✅ Fix: Use the "bed & breakfast" strategy annually. Sell positions with gains up to €1,270, then rebuy immediately. Tax-free cost basis reset.
8. ❌ Filing Form CG1 When You Should File Form 11
The mistake: Filing Form CG1 even though you have dividend income or other income sources.
Why it matters: Form CG1 is ONLY for capital gains. If you have dividends, rental income, or self-employment, you MUST file Form 11.
✅ Fix: Check all income sources. Any non-CGT income = Form 11 required. Form 11 deadline is earlier (Oct 31 / Nov 19).
9. ❌ DIY Complex Tax Situations
The mistake: Trying to handle options trading, derivatives, or 50+ transactions without professional help.
Why it matters: Complex situations (trading vs investment distinction, corporate actions, multi-currency) can result in significant errors and Revenue audits.
✅ Fix: Know your limits. This tool helps with standard scenarios. For complex situations, consult a qualified tax advisor BEFORE filing.
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⚠️ Important Disclaimer
Tax-Wizard is a helper tool, not professional tax advice. You are solely responsible for your tax return.
Irish tax law is complex. We strongly recommend:
- - Consulting a qualified tax advisor or accountant
- - Verifying all calculations independently
- - Understanding your specific tax situation
- - Keeping detailed records of all transactions (6 years)
- - VERIFYING PRSI/USC treatment with Revenue (01 738 3636)
Always verify with Revenue.ie and professional advisors.
📚 Sources & References
This guide was compiled using the following official and authoritative sources (verified January 2026):
Official Government Sources
- Revenue.ie - Capital Gains Tax - CGT rates, exemptions, payment deadlines
- Revenue.ie - USC Rates & Thresholds - 2025 USC bands and rates
- Revenue.ie - DIRT Rates - Deposit Interest Retention Tax
- Revenue.ie - Dividend Withholding Tax - DWT rates and rules
- Revenue.ie - Filing Deadlines - Form 11 and CG1 deadlines
- Revenue.ie - Stamp Duty on Shares - Irish share stamp duty rules
- Citizens Information - CGT Guide - Public information on capital gains
- Revenue.ie - Dividend Income - PRSI/USC applicability on dividends
- Revenue.ie - Form 11 2024 - Official income tax return form
- Revenue.ie - Form CG1 Helpsheet - CGT return filing guidance
- Revenue.ie - Foreign Deposit Income - P2P and foreign interest taxation
Legal & Professional Sources
- Chartered Accountants Ireland - Section 581 TCA 1997 - 4-week wash sale rule legislation
- KPMG - Budget 2026 Tax Tables - Tax rate changes and updates
- Clearstream - Stamp Duty Relief 2026 - New stamp duty exemption announcement
- Money Guide Ireland - ETF Taxation - EXIT tax and deemed disposal rules
- Revenue TDM 02-01-03 - Cryptocurrency taxation guidance
- Koinly - Crypto Tax Ireland - Crypto staking and mining treatment
- Cloud Accounts - Deemed Disposals - ETF 8-year rule explained
- Accounts Advice Centre - CFD Taxation - Options and derivatives tax treatment
- Taxback - eToro Tax Guide - Broker-specific tax guidance
- Frugal Personal Finance - P2P Tax - P2P lending income taxation
Last verified: January 2026. Tax laws change frequently. Always verify current rates with Revenue.ie before filing.