Chapter 7 of 10 · Selling · 9 of 14
Selling a rental property in Ireland: CGT and the steps
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Selling a buy-to-let or former home: CGT at 31%, partial PPR relief, allowable costs, the mortgage and the tenancy.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Selling a home you let out, whether a buy-to-let you never lived in or a former home you moved out of, means capital gains tax on some or all of the profit. This guide shows how the tax is worked out, with a worked example, what you can take off, what happens to the mortgage and the tenant, and when the tax is paid.
The worked example first
Someone bought a home on 15 January 2015 for €250,000, with €6,000 of buying costs. They lived in it until 31 December 2019, then let it. They sell it with a contract dated 20 November 2026 for €480,000, with €12,000 of selling costs.
| Step | Figure |
|---|---|
| Sale price | €480,000 |
| Less costs of selling | €12,000 |
| Less cost of buying, including €6,000 of costs | €256,000 |
| Gain | €212,000 |
| Days owned | 4,328 |
| Days as main home, plus the last 12 months | about 50.3% |
| Relieved as the main home | about €106,661 |
| Less the €1,270 annual exemption | €1,270 |
| Taxable gain | about €104,069 |
| Tax at 31% (announced) | about €32,261 |
| Tax at 33%, the rate in force | about €34,343 |
| Pay by | 15 December 2026 |
| File the return by | 31 October 2027 |
If the owner had never lived in the home, there would be no relief, and the tax would be 31% of €210,730, which is €65,326 at the announced rate, or €69,541 at 33%. The capital gains tax calculator works it out for your own dates and figures.
The rate, and the announced change
Capital gains tax (CGT) is the tax on the profit when you sell. The rate in force is 33%. Budget 2027 announced a rate of 31% for sales with a contract dated 7 October 2026 or later. The change is not law until the Finance Act 2026 passes, so every figure at 31% here is marked announced. The date that matters is the contract date, not the closing date. The rule change tracker shows the status.
A buy-to-let you never lived in
The whole gain is taxed. Take the sale price, take off the costs of selling, take off what you paid with the costs of buying, take off improvements, take off €1,270, and apply the rate. There is no relief for a home that was never your main home.
A former home you moved out of
Here the relief called principal private residence relief covers part of the gain. The rules, in outline:
- The days the home was your only or main home are relieved.
- The last twelve months you owned it are always relieved, whatever was happening.
- Some absences count as if you were living there: working abroad with occupation before and after, and up to four years away for a job in Ireland.
- The rest of the days are taxed.
Divide the relieved days by the total days owned and apply that fraction to the gain. The guide on principal private residence relief explains each rule and the edges, such as letting a room or a self-contained part.
What you can take off
| Counts against the gain | Does not count |
|---|---|
| The price you paid and the stamp duty | Mortgage interest, which was set against rent |
| Solicitor, survey and valuation fees when buying | Repairs and maintenance, set against rent |
| Agent's fee, solicitor's fee and advertising when selling | Letting agent fees, insurance, RTB fees, LPT |
| An extension, an attic conversion, a new kitchen still in place | Furniture and appliances |
| Costs of defending your title | Work that was later replaced |
The line between an improvement and a repair matters. A new kitchen in place of a worn one is usually an improvement. Replacing a broken boiler with a like-for-like one is a repair. If a cost was claimed against rental income in a tax return, it cannot be claimed again against the gain. Keep every invoice.
For costs before 1 January 2003, a rule called indexation increases the cost for inflation. The calculator notes it but does not compute it.
Losses, and two owners
If the sale makes a loss, there is no tax, and the loss can be set against other gains in the same year or carried forward. Where two people own the home, each has half the gain, their own €1,270 exemption and their own return. Spouses can share unused losses.
The mortgage
A buy-to-let mortgage is paid off from the sale price on closing day, like any mortgage. Your solicitor gets a redemption figure from the lender. A fixed rate can carry a breakage fee, in writing on request. The guide on selling a house with a mortgage explains the figure, the fee and what to do if the price does not clear the loan.
The tax is on the gain, not on the cash. If the mortgage takes most of the proceeds, the tax is still due on the full gain. Work out the tax before you agree a price, so the proceeds cover it.
The tenant
A sale does not end a tenancy. You can sell with the tenant in place, in which case the buyer becomes the landlord, or end the tenancy on the ground of sale with a valid notice and the period the RTB sets. The RTB is the Residential Tenancies Board, which registers tenancies and decides disputes. The guide on selling a house with tenants covers both routes in outline, and rtb.ie has the current rules and forms.
The tax on the rent, up to the sale
Rental income is taxed each year through your income tax return, separately from CGT. The year of sale still needs a return for the rent received up to the closing date. Any final repairs before the sale are set against that rent, not against the gain.
When to pay and when to file
| Contract date | Pay by | File the return by |
|---|---|---|
| 1 January to 30 November | 15 December in the same year | 31 October the following year |
| 1 to 31 December | 31 January the following year | 31 October the following year |
Payment comes first, through Revenue's online services. The return comes later, on a CG1 form or in your income tax return. A sale over €1 million needs a CG50 clearance certificate, or the buyer must withhold 15% of the price. The guide on the CG50 clearance certificate explains it.
The other costs of the sale
An agent with a PSRA licence (see estate agent) charges 1% to 2.5% plus VAT. A solicitor on the Law Society's register (see conveyancing solicitor) charges €1,200 to €2,500 plus VAT. You need a BER from an assessor on SEAI's register if the one from the letting is over ten years old. All of these count against the gain. The guide on the cost of selling lists them with an example at €400,000.
Where this leaves you
Put the dates you lived there, the prices and the costs into the capital gains tax calculator to see the relief, the tax at both rates and the dates to pay and file. The selling journey lists the other steps. A sale with tax due is one to talk through with a tax adviser before contracts are signed.
Questions people ask
How much tax do I pay when I sell a rental property in Ireland?
Capital gains tax on the gain, at 33%, or 31% as announced for contracts dated 7 October 2026 or later. The gain is the price less the costs of selling, less what you paid, the costs of buying and improvements. The first €1,270 is exempt.
Do I pay CGT if I lived in the house before renting it out?
Only on part of the gain. The days you lived there, plus the last twelve months you owned it, are free of tax. The days it was let are taxed. The split is by days over the whole time you owned it.
What costs can I deduct when selling a rental property?
The costs of buying, the costs of selling and improvements that are still there, such as an extension or a new kitchen. Repairs, mortgage interest and letting costs are not deducted from the gain, because they were set against the rent each year.
Can I avoid CGT by moving back into my rental property?
Moving back makes those days count as your main home, which relieves that part of the gain. It does not wipe out the gain for the years it was let. Revenue looks at whether the home was really your main home, not just where you were registered.
When is CGT due on the sale of a rental property?
By 15 December in the same year for a contract dated January to November, or by 31 January the following year for a December contract. The return is due by 31 October the following year.